Nordstrom has agreed to be taken private by the company’s founding family and Mexican department store El Puerto de Liverpool in a deal valued at $6.25 billion. The Nordstrom family will have majority ownership with 50.1%, while Liverpool will own 49.9%. Common shareholders will receive $24.25 per share in cash.
CEO Erik Nordstrom expressed excitement about this new chapter for the company, which has a long history of helping customers look and feel their best. This is not the first time Nordstrom has tried to go private, with a previous attempt in 2018. The stock fell slightly in early trading following the announcement.
Luxury retailers like Nordstrom have been facing pressure as consumers opt for essential purchases at retailers like Walmart, Best Buy, and Target. Nordstrom beat sales expectations in the third fiscal quarter, but had a cautious outlook for the holiday season.
Nordstrom was founded in 1901 as a shoe store and has since expanded to over 350 locations selling clothing and accessories. El Puerto de Liverpool operates two department store chains in Mexico and owns multiple shopping centers. The deal is expected to close in the first half of 2025.
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