The Mexican department retailer El Puerto de Liverpool and Nordstrom’s founding family agreed to a $6.25 billion takeover agreement, and Nordstrom announced on Monday that it will become a private company.
The deal, which is anticipated to finalize in the first half of 2025, was unanimously authorized by the company’s board of directors.
According to the agreement, Liverpool will hold 49.9% of the business, while the Nordstrom family will own 50.1%. According to a press statement, common stockholders will get $24.25 in cash for every share of Nordstrom common stock they own.
According to a news statement from Nordstrom CEO Erik Nordstrom, the company has been operating on the fundamental tenet of helping consumers feel good and look their best for more than a century. The company is embarking on an exciting new phase today. My family and I look forward to collaborating with our colleagues to make sure Nordstrom continues to prosper for a very long time.
The retailer has already attempted to go private. An earlier attempt failed in 2018. The Nordstrom family valued the chain at about $3.76 billion when they offered $23 per share in September.
Early trading saw a 1% decline in Nordstrom’s stock price. Since a March Reuters story revealed that the family intended to take the business private, shares in the company had skyrocketed.
In November, Nordstrom exceeded Wall Street’s sales forecasts for the fiscal third quarter, with revenue increasing by roughly 4% annually. However, the business only provided a somewhat more optimistic full-year sales projection, stating that it anticipated a slow holiday season.
Retailers like Walmart, Best Buy, and Target have claimed that consumers are still picky about what they want rather than need, and they are paying greater attention to price. This has put pressure on luxury clothes businesses.
Nordstrom was founded as a shoe store in 1901 before transitioning into a department store that sells a wide variety of clothing and accessories across more than 350 Nordstrom, Nordstrom Local and Nordstrom Rack locations.
El Puerto de Liverpool operates two other department store chains, Liverpool and Suburbia, and owns 29 shopping centers across Mexico.
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