Nordstrom family to take retailer private in $6.25bn deal
By Benjamin Chiou
Date: Monday 23 Dec 2024
(Sharecast News) - American department-store chain Nordstrom on Monday announced a deal to sell the company back to its founding family and Mexican peer El Puerto de Liverpool.
Erik, Pete, Jamie Nordstrom and other members of the family and Liverpool will buy up all of the outstanding common shares of Nordstrom they don't already own in a deal valuing the retailer at $6.25bn.
The Nordstrom family collectively will hold a majority stake in the company once the deal completes.
Under the terms of the deal, shareholders will receive $24.25 a share in cash, a 42% premium to the closing price on 18 March - the day before M&A speculation began.
Since that date, the stock has risen by 44% to close Friday's session at $24.53. As such, the board has decided to authorise a special dividend of up to $0.25 a share, which is contingent on the transaction going ahead.
Excluding chief executive Erik and president Pete Nordstorm, who expressed interest in taking the company private back in February, the rest of the Nordstrom board have unanimously approved the deal.
Eric Sprunk, who led the special committee formed to assess the proposal, said it was reviewed against the retailer's standalone prospects for growth. "Following a rigorous and independent evaluation and consultation with outside financial and legal advisors, the special committee unanimously concluded that this transaction offers greater value for all public shareholders at a significant premium to the unaffected share price," he said.
Nordstrom said it expects the deal to close in the first half of next year, subject to regulatory and other conditions, including the approval of two-thirds of the company's common stock holders.
The stock was down 1.3% at $24.22 by 1006 in New York.
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