Nordstrom to Be Acquired by Family and El Puerto de Liverpool for $6.25 Billion

A century-old department store, Nordstrom, is set to be acquired and taken private by its founding family and a Mexican retail group for $6.25 billion. This acquisition was announced on Monday. Shareholders of Nordstrom will receive $24.25 in cash per share, which is a 42% premium over the stock's value as of March 18, when news of the potential deal surfaced.

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The offer surpasses a previous bid of $23 per share made by the Nordstrom family and El Puerto de Liverpool in September. The board has also proposed a special dividend of up to 25 cents per share, contingent on the transaction's completion and based on available cash at that time.

Nordstrom Family's Role in Acquisition

Erik and Pete Nordstrom, part of the family taking over the company, did not participate in the voting process. The board of directors unanimously approved the proposed transaction. Once finalized, the Nordstrom family will hold a majority stake in the company.

Erik Nordstrom serves as the chief executive officer, while Pete Nordstrom is the president. They are fourth-generation leaders of this Seattle-based retailer, which began as a shoe store in 1901.

Market Reaction and Financial Performance

In premarket trading, Nordstrom shares dropped about 1.5%, reaching $24.16 per share. However, shares have risen approximately 34% in 2024. Last quarter, Nordstrom exceeded Wall Street's revenue and profit expectations for the third quarter, with sales increasing by 4.6% to nearly $3.5 billion.

This year alone, Nordstrom has opened 23 new stores, bringing its total to 381 Nordstrom and Nordstrom Rack locations across the United States.