Seattle— One of the top 20 home textiles retailers in the United States, Nordstrom Inc., is preparing to go private.
Members of the Nodstrom family and El Puerto de Liverpool (Liverpool), a Mexican omnichannel retailer that runs 310 stores under the Liverpool and Suburbia brands in addition to 119 specialty boutiques and 29 shopping centers, have agreed to buy the department store chain.
According to HTT forecasts, Nordstrom department stores and Nordstrom Rack produced $440 million in home textile sales in 2023, despite soft home making up a modest portion of the company’s total sales.
In an all-cash deal for roughly $6.25 billion on an enterprise basis, Erik, Pete, Jamie, and other Nordstrom family members, along with Liverpool, will purchase all of the outstanding common shares of Nordstrom that the parties do not currently control. The Nordstrom Family will own a majority ownership share in the company after the deal closes.
According to the deal, each share of Nordstrom common stock held by common stockholders will earn $24.25 in cash. On March 18, 2024, the last trading day before media rumors about a possible deal began, the company’s unaffected closing common stock price was 42% lower than the merger amount.
Furthermore, the board of Nordstrom plans to approve a special dividend of up to $0.25 per share (depending on Nordstrom’s cash on hand) just before the deal closes and subject to its approval. After the deal is finalized, Nordstrom will be a privately held corporation.
“Helping customers feel good and look their best has been the foundational principle of Nordstrom’s operations for more than a century,” stated Erik Nordstrom, the company’s CEO. “The company is embarking on an exciting new phase today. My family and I look forward to collaborating with our colleagues to make sure Nordstrom continues to prosper for a very long time.
