Nordstrom is acquired by the Nordstrom family and Mexican retail group for $6.25 billion
The Nordstrom family and a Mexican retail group have agreed to buy 100-year-old department store Nordstrom and take it private for $6.25 billion, the company announced Monday.
san francisco – The Nordstrom family and a Mexican retail group have agreed to buy 100-year-old department store Nordstrom and take it private for $6.25 billion, the company announced Monday.
Nordstrom shareholders will receive $24.25 in cash per share of Nordstrom common stock, representing a 42% premium for the company’s stock as of March 18, when the potential transaction was reported in the media.
The offer exceeds a previous bid of $23 per share made by Mexican retail group El Puerto de Liverpool in September.
The Board of Directors also intends to approve a special dividend of up to 25 cents per share, based on Nordstrom’s cash reserves, immediately prior to and subject to the closing of the transaction.
Nordstrom’s board of directors unanimously approved the proposed transaction, but Eric Nordstrom and Pete Nordstrom, members of the Nordstrom family who took over the company, refrained from voting.
After the transaction closes, the Nordstrom family will own a majority stake in the company.
Eric and Pete Nordstrom are fourth-generation leaders of the Seattle-based retailer, which was founded in 1901 as a shoe store. Eric is the CEO of the company and Peter is the president.
Nordstrom shares fell about 1.5% in premarket trading to $24.16 per share. The stock price has increased about 34% so far in 2024.
Nordstrom’s sales rose 4.6% last quarter to nearly $3.5 billion, beating Wall Street’s third-quarter sales and profit expectations.
After opening 23 new stores so far this year, the company now operates 381 Nordstrom and Nordstrom Rack stores in the United States.
