Nordstrom has announced a significant change in its business structure, opting to go private in a deal valued at approximately $6.25 billion. This transaction involves Nordstrom’s founding family acquiring a majority stake, alongside a partnership with the Mexican department store chain, El Puerto de Liverpool. The company’s board of directors has unanimously approved this move, which is anticipated to conclude in the first half of 2025.
Under the terms of the agreement, the Nordstrom family will hold a 50.1% stake, while Liverpool will control 49.9%. Shareholders can expect to receive $24.25 per share for their Nordstrom stock. Expressing optimism about this transition, CEO Eric Nordstrom stated that the decision represents an exciting new chapter for the business, reinforcing the company’s longstanding commitment to customer satisfaction.
This is not the first attempt by Nordstrom to go private; a previous effort in 2018 was unsuccessful. Earlier this year, the Nordstrom family proposed an initial offering of $23 per share, which valued the company at about $3.76 billion. Following the news of their intent to take the company private, Nordstrom’s shares experienced fluctuations in the market.
Recently, Nordstrom reported a 4% increase in its fiscal third-quarter sales compared to the previous year, which exceeded Wall Street’s expectations. However, the company has indicated a cautious outlook for the holiday sales season, reflecting a trend where consumers are prioritizing essential purchases over luxury items amid broader economic pressures.
Founded in 1901 as a shoe store, Nordstrom has evolved into a department store chain with over 350 locations, including Nordstrom Rack and Nordstrom Local. El Puerto de Liverpool, which will now partner with them, operates several department store chains in Mexico and manages numerous shopping centers across the country.