Nordstrom to Go Private

Nordstrom to Go Private After $6.25 Billion Buyout Deal

Nordstrom, a leading fashion retailer, has announced that it will become a private company after agreeing to a buyout deal valued at approximately $6.25 billion from its founding family and Mexican department store El Puerto de Liverpool.

The company’s board of directors has unanimously approved the transaction, which is expected to close in the first half of 2025. As part of the deal, the Nordstrom family will have majority ownership in the company, with 50.1%, while Liverpool will own 49.9%. Common shareholders will receive $24.25 in cash for each share of Nordstrom common stock they hold.

A New Chapter for Nordstrom

According to Nordstrom CEO Erik Nordstrom, the company is embarking on an exciting new chapter. "For over a century, Nordstrom has operated with a foundational principle of helping customers feel good and look their best," he said. "Today marks an exciting new chapter for the business. On behalf of my family, we look forward to working with our teams to ensure Nordstrom thrives long into the future."

A Previous Attempt Fizzled Out

This is not the first time Nordstrom has attempted to go private. In 2018, the company’s founding family offered $23 a share for the chain, valuing the company at roughly $3.76 billion. The deal ultimately fell through.

Recent Performance

Nordstrom has recently reported strong sales growth, with revenue increasing about 4% year over year in its fiscal third quarter. The company also beat Wall Street’s sales expectations, but provided a slightly rosier full-year sales forecast, citing a soft holiday season.

Challenges in the Luxury Retail Space

Luxury clothing stores have been facing challenges in recent years, as consumers become increasingly choosy about what they buy. Retailers such as Walmart, Best Buy, and Target have reported that customers are prioritizing only the items they need, rather than wants, and are paying more attention to price.

About Nordstrom

Nordstrom was founded as a shoe store in 1901 and has since transitioned into a department store selling a wide range of clothing and accessories across more than 350 locations. El Puerto de Liverpool operates two other department store chains, Liverpool and Suburbia, and owns 29 shopping centers across Mexico.

FAQs

Q: What is the value of the buyout deal?
A: The buyout deal is valued at approximately $6.25 billion.

Q: How much ownership will the Nordstrom family have in the company?
A: The Nordstrom family will have 50.1% majority ownership in the company.

Q: When is the deal expected to close?
A: The deal is expected to close in the first half of 2025.

Q: What will happen to common shareholders?
A: Common shareholders will receive $24.25 in cash for each share of Nordstrom common stock they hold.