Nordstrom to be acquired by Nordstrom Family and Liverpool in $6.25bn deal

Investing.com -- Nordstrom, Inc. announced Monday that it will be acquired by members of the Nordstrom (NYSE:JWN ) family and Mexican retail giant El Puerto de Liverpool, S.A.B. de C.V. (Liverpool) in a $6.25 billion all-cash transaction. 

The deal, which values Nordstrom at $24.25 per share, represents a 42% premium to its stock price before speculation of a potential transaction began in March 2024.

Once finalized, the iconic department store will become a private company. The Nordstrom family will hold a 50.1% majority stake, while Liverpool will own the remaining 49.9%.

The deal has been unanimously approved by Nordstrom’s Board of Directors. 

A special committee of independent directors, formed in February 2024, led the evaluation. “This transaction offers greater value for all public shareholders at a significant premium,” said Eric Sprunk, chairman of the special committee.

The acquisition will be financed through a combination of rollover equity from 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. 

The company’s $2.7 billion in existing debt will remain outstanding post-transaction.

For Liverpool, the partnership represents a strategic move. “We are honored to partner with the Nordstrom family and its talented team as they continue delivering outstanding service,” said Graciano Guichard, executive chairman of Liverpool.

The transaction is expected to close in the first half of 2025. Until then, Nordstrom plans to continue its regular dividend payouts.

 

Source: Investing.com