Nordstrom Family to Take Department Store Chain Private in $6.25 Billion Deal
The Nordstrom family is set to take the 123-year-old department store chain private in a deal valued at $6.25 billion, in partnership with Mexican retailer El Puerto de Liverpool, the Washington Post reports.
The transaction, announced Monday, is expected to be finalized by the first half of 2025.
As part of the agreement, Nordstrom shareholders will receive $24.25 in cash per share of common stock, which represents a 42% premium over the stock’s closing price on March 18, just before news of the deal first emerged. Additionally, the company’s board will approve a special dividend of $0.25 per share once the deal is completed.
The move follows a series of discussions earlier this year after members of the Nordstrom family expressed interest in taking the company private. This marks a second attempt by the family to take the Seattle-based retailer private, as a similar effort was made around seven years ago but ultimately did not come to fruition.
Nordstrom’s decision to go private comes amid ongoing challenges for traditional retailers and department stores, many of which are grappling with shifting consumer habits and economic pressures, such as inflation and high interest rates. As consumers increasingly turn to online shopping, many brick-and-mortar chains, including Macy’s and Saks Fifth Avenue, have been restructuring or closing stores. Other retailers, such as The Container Store, have filed for bankruptcy, while Big Lots and Party City have also announced store closures or liquidations.
On Monday, Nordstrom’s stock price dropped by approximately 1.8%, reflecting some market reaction to the news.
