Luxury Department Store Operator Nordstrom Agrees to $6.25 Billion Acquisition
In a major deal that shakes up the retail landscape, Nordstrom, the iconic luxury department store operator, has agreed to be acquired by its founding family and Mexican retailer El Puerto de Liverpool. The acquisition values Nordstrom at approximately $6.25 billion, including debt.
A Premium Offer for Shareholders
Under the terms of the agreement, Nordstrom’s shareholders will receive $24.25 in cash for each share held, a significant increase from the initial offer of $23 per share made in September. This represents a substantial 42% premium to the stock’s unaffected close on March 18.
A Family Affair
The acquisition gives the Nordstrom family, led by CEO Erik Nordstrom and President Pete Nordstrom, a majority ownership stake in the company. This development comes at a time when department store chains across the United States are struggling to cope with sluggish sales and rising costs.
A Long-Awaited Deal
Reuters exclusively reported on March 19 that the founding family was seeking to take Nordstrom private, six years after a similar attempt proved unsuccessful. The company had formed a special committee in February to explore the possibility of a deal.
What’s Next?
The transaction is expected to close in the first half of 2025, according to Nordstrom. While the company’s shares were down nearly 2% before the bell on Monday, the acquisition is seen as a strategic move to revitalize the brand and navigate the challenging retail landscape.
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