Nordstrom (NYSE: JWN) said Monday it is going private, in an all-cash deal valued at around US$6.25 billion (A$10 billion).
Nordstrom’s founding family and Mexican retailer El Puerto de Liverpool will acquire the company, and Nordstrom shareholders will receive $24.25 per share in cash. The Board also intends to pay a special dividend of up to $0.25 per share in cash on closing.
The luxury department store chain said the buyout was driven by the founding family betting that the company will be more successful without the scrutiny and demands of the public market.
Nordstrom shares fell following the news and closed 1.5% lower at $24.17 on Monday.
The deal will see the Nordstrom family acquire all of the outstanding common shares of Nordstrom not already held by the family, giving them a 50.1% majority ownership stake, and Mexican department store chain El Puerto de Liverpool will own 49.9%.
"For over a century, Nordstrom has operated with a foundational principle of helping customers feel good and look their best," said Erik Nordstrom, chief executive officer of Nordstrom.
"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," he added.
The company’s board of directors unanimously approved the transaction, which is expected to close in the first half of 2025.
The company has attempted to go private before, in September this year the Nordstrom family offered $23 a share for the retailer, valuing the company at around $3.76 billion.
Nordstrom’s latest results in November beat Wall Street’s earnings expectations, despite discretionary spending and the luxury sector coming under pressure.
Nordstrom, Inc. (NYSE: JWN) started as a shoe store in 1901 and now has more than 350 Nordstrom, Nordstrom Local and Nordstrom Rack locations.
El Puerto de Liverpool is a Mexican omnichannel retailer and operates two other department store chains, Liverpool and Suburbia.
