The Nordstrom family, in partnership with Mexican retail conglomerate El Puerto de Liverpool, has finalized the acquisition of industry customer Nordstrom Inc. for $24.25 per share in an all-cash transaction. The deal includes a special cash dividend of $0.25 per share and a stub period quarterly dividend of $0.1462 per share. Effective Tuesday, Nordstrom’s common stock will no longer trade on the New York Stock Exchange and will be formally delisted as the company transitions to private ownership.
The family-led consortium, which involves Nordstrom CEO Erik Nordstrom and President Pete Nordstrom, aims to usher in a new chapter for the nearly 125-year-old retail company. “This marks an important milestone in our history,” Erik Nordstrom said in a statement. “We remain focused on delivering exceptional service and quality merchandise to our customers.”
Pete Nordstrom echoed the sentiment, emphasizing the company’s heritage of customer-centric values as it enters this new phase. The Nordstrom brothers will continue to lead the company as co-CEOs under the new ownership structure.
Liverpool’s Role in the Acquisition
The acquisition represents a strategic partnership with El Puerto de Liverpool, a key player in Mexico’s retail industry. Liverpool operates 310 department stores under the Liverpool and Suburbia brands, 119 boutiques, and 29 shopping centers across Mexico.
Going forward, Nordstrom will be owned 50.1% by the Nordstrom family and 49.9% by Liverpool.
When the transaction was first announced, the company said it would be financed through a combination of rollover equity by the Nordstrom family and Liverpool, cash commitments by Liverpool, up to $450 million in borrowings under a new $1.2 billion ABL bank financing, and company cash on hand.
Impact on Nordstrom’s Stockholders and Future
The acquisition was valued at roughly $3.8 billion, and the per-share buyout price aligns with its recent stock trading value. Nordstrom’s transition to private ownership comes after years of fluctuating performance, with improvements in its off-price Rack division offsetting challenges in its department store sector. By going private, the company believes it has greater flexibility to address structural challenges and strengthen its operational model without the pressures of public trading.
Morgan Stanley, Centerview Partners, Moelis & Company, and J.P. Morgan Securities advised the consortium on financial matters, while legal counsel included Sidley Austin LLP, Perkins Coie LLP, and Simpson Thacher & Bartlett LLP.
