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The family that founded Nordstrom and El Puerto de Liverpool is buying Nordstrom, paving the way. the seller to return to work as a private company.
Nordstrom on Monday announced an agreement for the Nordstrom family and a Mexican company to buy the shares they do not already own.
The proposed total, worth $6.25 billion, comes 10 months after Nordstrom set up a special committee to review the Nordstrom family’s proposals. The Nordstrom family and El Puerto de Liverpool have offered $23 per share to take the company private in September.
The Nordstrom family, including CEO Erik Nordstrom, CBO Pete Nordstrom and others, and El Puerto de Liverpool will pay $24.25 per share to buy the retailer, Nordstrom said Monday.
Shoppers leave a Nordstrom store on May 26, 2021, in Chicago. (Photo: Scott Olson/Getty Images)
The price “represents a premium of approximately 42% to the company’s common stock value which is not affected by March 18, 2024, the trading deadline prior to the commencement of the transaction,” the seller said.
“A special committee of the Nordstrom Board of Directors reviewed the proposal against the company’s expected growth. Following a thorough and independent evaluation and consultation with external financial and legal advisors, the special committee agreed that this offer provides the greatest value to all shareholders. more at an unbeatable price,” said Nordstrom President Brad Tilden.
Nordstrom, the Nordstrom family and El Puerto de Liverpool expect the completion of the project to be completed in the first six months of next year. It will require “the approval of two-thirds of the Company’s common stock and holders of a majority of the Company’s shares that are not members of the Nordstrom Family or Liverpool or their subsidiaries and the Company’s directors and officers” to pass Section 16, according to Nordstrom.
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The seller will legally return to private ownership later. It has been on the market for more than fifty years, since it was first offered in 1971.
A Nordstrom store at the upscale Broadway Plaza Shopping Center in Walnut Creek, California, July 30, 2017. (Smith Collection/Gado/Getty Images)
The Nordstrom family will hold 50.1% of the retailer post-transactionmaking them majority shareholders, according to the company. The rate of El Puerto de Liverpool will be 49.9%.
| Ticker | Security | Finally | Change it | Change % |
|---|---|---|---|---|
| JWN | The opinion of the company NORDSTROM INC. | 23.06 | + 0.35 |
+1.54% |
The company, founded by John W. Nordstrom and Carl Wallin, began in 1901. It originated in Seattle, the city where the two opened their first store and where the company has its headquarters to this day.
Erik Nordstrom said the story “is the exciting new part of the business.”
Shoppers enter a Nordstrom store on April 1, 2003, on Michigan Avenue in Chicago. (Photo: Scott Olson/Getty Images)
By the end of the third quarter, the retailer operated 93 Nordstrom stores, six Nordstrom Local locations, 280 Nordstrom Rack stores and two Last Chance stores, according to its third earnings report.
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Nordstrom generated $10.69 billion in revenue for the first three years of 2024. Its net income, meanwhile, was $128 million during the same period.
In late November, the retailer forecast “growth as low as 1.0 percent” in annual revenue “compared to the 53-week period of 2023.”
His market capitalization it was worth about $3.99 billion as of Monday morning.
