Nordstrom Costs $6.25 Billion Deal With Founding Household, Mexican Retailer

The household that based Nordstrom and El Puerto de Liverpool buys Nordstrom, paving the best way for the retailer resume operations as a non-public firm.

Nordstrom introduced its settlement Monday that the Nordstrom household and the Mexico-based firm would repurchase shares they don’t already personal.

The deliberate all-cash transaction, value $6.25 billion, comes about 10 months after Nordstrom established a particular committee to guage the Nordstrom household’s proposals. The Nordstrom household and El Puerto of Liverpool submitted a $23 per share provide to take the corporate non-public in September.

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The Nordstrom household, together with CEO Erik Nordstrom, CBO Pete Nordstrom and others, and Liverpool’s El Puerto can pay $24.25 per share to amass the retailer, Nordstrom mentioned Monday.

Consumers depart a Nordstrom retailer on Could 26, 2021 in Chicago. (Scott Olson/Getty Photographs)

This worth “represents a premium of roughly 42% to the unaffected closing worth of the Firm’s frequent inventory on March 18, 2024, the final buying and selling day earlier than media hypothesis relating to a possible transaction,” the retailer mentioned .

“The Particular Committee of the Nordstrom Board of Administrators has thought of this proposal in relation to the Firm’s self-sustaining progress prospects. After a rigorous and unbiased analysis and session with exterior monetary and authorized advisors, the Particular Committee has concluded that: “There may be unanimity that this transaction offers larger worth for all public shareholders at a major premium to the unaffected share worth,” mentioned Nordstrom President Brad Tilden.

Nordstrom, the Nordstrom household and El Puerto of Liverpool count on the transaction to be accomplished within the first six months of subsequent 12 months. It’ll require “the approval of the holders of two-thirds of the frequent inventory of the Firm and of the holders of a majority of the shares of the Firm not owned by the Nordstrom household or Liverpool or their respective associates and of the administrators and officers of the corporate’s Part 16” to go, in line with Nordstrom.

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The retailer will formally turn out to be a non-public firm once more after that. It has been a publicly traded firm for greater than 5 a long time, since its IPO in 1971.

A Nordstrom division retailer within the upscale Broadway Plaza procuring middle in downtown Walnut Creek, California on July 30, 2017. (Assortment Smith/Gado/Getty Photographs)

The Nordstrom household will personal 50.1% of the retailer post-transactionmaking them the bulk shareholders, in line with the corporate. El Puerto de Liverpool’s stake will likely be 49.9%.

The corporate, co-founded by John W. Nordstrom and Carl Wallin, dates again to 1901. It originated in Seattle, the town the place the 2 males opened their first retailer and the place the corporate continues to be headquartered at present.

Erik Nordstrom mentioned the information “marks an thrilling new chapter for the corporate.”

Consumers enter the Nordstrom retailer April 1, 2003, on Michigan Avenue in Chicago. (Scott Olson/Getty Photographs)

On the finish of the third quarter, the retailer operated 93 Nordstrom shops, six Nordstrom Native places, 280 Nordstrom Rack stores and two Final Likelihood clearance shops, in line with its third-quarter earnings report.

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Nordstrom generated $10.69 billion in income in the course of the first three quarters of 2024. Its web revenue, in the meantime, was $128 million over the identical interval.

On the finish of November, the retailer forecast “secure progress at 1.0%” in annual income for the 12 months “in comparison with 53 weeks of fiscal 2023.”

It’s market capitalization was hovering round $3.99 billion as of mid-morning Monday.