Nordstrom Inc. returns to family ownership.
The Nordstrom family, as well as Mexican department store operator El Puerto de Liverpool, will acquire all of Nordstrom’s outstanding common shares, the US retailer announced on Monday. The transaction value is approximately $6.25 billion (approximately €6.01 billion) on an enterprise basis. Once the acquisition is complete, the Nordstrom family will hold a majority stake in the company.
The transaction, which valued the company’s shares at $24.25, is expected to close in the first half of 2025, subject to regulatory approvals and other conditions. Once the deal closes, Nordstrom will be 50.1 percent owned by the Nordstrom family and 49.9 percent owned by Mexican retailer El Puerto de Liverpool. Before the acquisition, the Nordstrom family owned 33.4 percent of the company, while El Puerto de Liverpool acquired a 9.6 percent stake in 2020 for $300 million.
The board of directors has already approved the takeover, with Erik and Pete Nordstrom recusing themselves from the decision. A special commission of independent directors, established in February 2024, led the review and negotiations on the project. The commission, consisting of Kirsten Green, Amie Thuener O’Toole and Eric Sprunk, was created after Erik and Pete Nordstrom expressed interest in exploring ways to increase shareholder value, according to the release.
The founding family of Nordstrom had previously expressed their interest in delisting the company. Shortly afterwards, the company confirmed that it was exploring the possibility of privatization as part of a comprehensive strategy to increase shareholder value. In a statement in May, Nordstrom emphasized its commitment to advancing strategic goals by evaluating various financial, operational and strategic alternatives. These considerations ultimately led to the board’s approval.
“The Special Committee of the Nordstrom Board of Directors has reviewed this proposal in light of the Company’s standalone growth prospects,” said Eric Sprunk, Chairman of the Special Committee. “After a rigorous and independent assessment and consultation with external financial and legal advisors, the Special Committee unanimously concluded that this transaction provides greater value for all public shareholders, at a significant premium to the unaffected share price. “