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The family that founded Nordstrom and The Port of Liverpool is purchasing Nordstrom, paving the way for the retailer to return to operating as a private company.
Nordstrom announced Monday its agreement for the Nordstrom family and the Mexico-based company to buy shares they do not already own.
The planned all-cash transaction, valued at $6.25 billion, comes about 10 months after Nordstrom established a special committee to weigh proposals from the Nordstrom family. The Nordstrom family and The Port of Liverpool submitted a $23 per share offer to take the company private in September.
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The Nordstrom family, including CEO Erik Nordstrom, CBO Pete Nordstrom and others, and The Port of Liverpool will pay $24.25 per share to acquire the retailer, Nordstrom said Monday.
Shoppers leave a Nordstrom store on May 26, 2021 in Chicago. (Scott Olson/Getty Images)
That price “represents a premium of approximately 42% over the closing price of the Company’s unaffected common stock on March 18, 2024, the last trading day prior to media speculation about a possible transaction,” the retailer said.
“The special committee of Nordstrom’s Board of Directors reviewed this proposal against the Company’s independent growth prospects. After rigorous and independent evaluation and consultation with outside financial and legal advisors, the special committee unanimously concluded that this transaction offers greater value for all shareholders at a significant premium to the unaffected share price,” said Nordstrom President Brad Tilden.
Nordstrom, the Nordstrom family and The Port of Liverpool anticipate the transaction to be completed in the first six months of next year. It will require “the approval of the holders of two-thirds of the Company’s common stock and of the holders of a majority of the Company’s stock not owned by the Nordstrom or Liverpool Family or their respective affiliates and of the directors and officers of the Company’s Section 16” to pass, according to Nordstrom.
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After that, the retailer will officially return to private ownership. It has been a publicly traded company for more than five decades, since its initial public offering in 1971.
A Nordstrom department store in the upscale Broadway Plaza shopping center in downtown Walnut Creek, California, on July 30, 2017. (Smith Collection/Gado/Getty Images)
The Nordstrom family will own 50.1% of the retailer after the transaction, making them majority owners, according to the company. The participation of El Puerto de Liverpool will be 49.9%.
| Heart | Security | Last | Change | Change % |
|---|---|---|---|---|
| JWN | NORDSTROM INC. | 23.06 | +0.35 |
+1.54% |
The company, co-founded by John W. Nordstrom and Carl Wallin, dates back to 1901. Its origins are in Seattle, the city where the two opened their first store and where the company is headquartered to this day.
Erik Nordstrom said the news “marks an exciting new chapter for the business.”
Shoppers enter the Nordstrom store on April 1, 2003, on Michigan Avenue in Chicago. (Scott Olson/Getty Images)
At the end of the third quarter, the retailer operated 93 Nordstrom stores, six Nordstrom Local sites, 280 Nordstrom Rack stores and two Last Chance clearance stores, according to its third-quarter earnings report.
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Nordstrom generated $10.69 billion in revenue during the first three quarters of 2024. Meanwhile, its net profit was $128 million in the same period.
In late November, the retailer forecast “steady 1.0 percent growth” in annual revenue for the year “compared to the 53-week fiscal 2023.”
Its market capitalization was around $3.99 billion as of mid-morning Monday.
