Nordstrom, the country’s oldest department store, announced Monday that it would be taken private by its founding family and a Mexican retail business. The company will be acquired by members of the Nordstrom family and El Puerto de Liverpool, a Mexican real estate and department store company, for $6.25 billion.
Under the deal, shareholders will receive $24.25 in cash for each share of Nordstrom common stock, representing a 42% increase over its closing price on March 18. The new owners plan to authorize a special dividend of up to 25 cents per share if the transaction is completed.
The Nordstrom family has been at the helm since 1901 and will retain a majority ownership stake in the company. CEO Erik Nordstrom welcomed the deal, calling it an “exciting new chapter” for the business.
Despite struggling department stores, Nordstrom has fared better than its competitors due to its favorable real estate and higher income clientele. However, the sale price of $6.25 billion is below the $78 a share that Nordstrom fetched in public markets about a decade ago.
Nordstrom’s recent sales figures show signs of improvement, with net sales expanding in the third quarter and gross profit increasing as the company was able to sell more merchandise at full price. The off-price Nordstrom Rack business also saw strong comparable sales growth last quarter.
Source: https://www.nytimes.com/2024/12/23/business/nordstrom-private-company-founding-family.html