Login
Sign Up

The Nordstrom family is taking back control of its store in a $6.25 billion deal

  • CNN
  • December 23, 2024
New York

CNN

 — 

Nordstrom, the upscale department store chain, is going private in a $6.25 billion deal with its founding family.

The retailer announced Monday that the family, Erik, Pete and Jamie Nordstrom, as well as Mexican department store chain El Puerto de Liverpool will acquire the remaining shares they don't own, giving the family a majority ownership stake in the 123-year-old company.

Shareholders will receive $24.25 in cash for each share, a roughly 42% premium of the stock based on the price on March 18, 2024 when speculation about Nordstrom (JWN) being taken private began. The stock fell 1% in in early trading and is up more than 30% for the year.

"For over a century, Nordstrom has operated with a foundational principle of helping customers feel good and look their best," said CEO Erik Nordstrom in a press release. "Today marks an exciting new chapter for the business. On behalf of my family, we look forward to working with our teams to ensure Nordstrom thrives long into the future."

Nordstrom's founding family tried taking the retailer private in 2018 at $50 per share, but the board said that was too low of a price. Monday's announcement marks a stunning decline from the company's pre-pandemic peak with its stock worth roughly half since then.

Like other department stores, Nordstrom has suffered from consumers cutting back on discretionary spending and shifting their habits to online rivals, like Amazon or rental startups such as Nuuly. In July, Saks Fifth Avenue and Neiman Marcus announced a merger giving them more leverage to negotiate with luxury brands for lower costs.

The deal, which is expected to close in early 2025, has to be approved by two-thirds of the company's common stockholders.