Nordstrom to Go Private in $6.25 Billion Deal with Founding Family and Mexican Retailer

Nordstrom to Go Private in $6.25 Billion Deal with Founding Family and Mexican Retailer

Nordstrom has agreed to a $6.25 billion buyout deal led by its founding family and Mexican department store chain, El Puerto de Liverpool. The transaction will take Nordstrom private, with the family retaining majority ownership at 50.1% and Liverpool holding 49.9%.

Under the deal, shareholders will receive $24.25 in cash per share, higher than the $23 per share previously offered by the Nordstrom family in September, which valued the company at $3.76 billion. The company’s board unanimously approved the transaction, which is set to close in the first half of 2025.

“This marks an exciting new chapter for our business,” said CEO Erik Nordstrom, expressing confidence in the company’s future under private ownership.

Nordstrom shares have risen 32% year-to-date, though the stock dipped 1% following the announcement. The company's sales beat Wall Street expectations in the third quarter, growing 4% year-over-year, but management remains cautious due to soft holiday sales projections amid restrained consumer spending on non-essentials.

Nordstrom was founded in 1901 as a shoe store and has since evolved into a department store chain with over 350 locations, including Nordstrom Rack. Liverpool operates department store chains Liverpool and Suburbia and owns 29 shopping centers in Mexico.