After a long pursuit, the Nordstrom family is taking its namesake retail company private with help from Mexican retailer El Puerto de Liverpool.
Led by current executives Erik, Pete, Jamie Nordstrom and including other members of the family, the all-cash transaction is valued at $6.25 billion on an enterprise basis.
The family members involved with El Puerto de Liverpool will acquire all of the outstanding common shares of the company not already beneficially owned by the Nordstrom family and Liverpool. At the transaction’s close, the Nordstrom family will have a majority ownership stake in the company.
“For over a century, Nordstrom has operated with a foundational principle of helping customers feel good and look their best,” said Erik Nordstrom, the company’s CEO. “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.”
Pete Nordstrom, the company’s Chief Brand Officer, added, “We’re grateful to the employees, customers and shareholders who have shaped Nordstrom into the company it is today. Since our founding in 1901, we have been committed to providing our customers with the best possible service and to improving it every day. We look forward to building on that commitment in this next phase of the company’s evolution.”
The parties expect the transaction to close in the first half of 2025, subject to regulatory and other conditions and approval granted by holders of two-thirds of Nordstrom’s common stock and the holders of a majority of company shares not owned by the Nordstrom family or Liverpool, as well as respective affiliates and the retailer’s directors and Section 16 officers. Financing will come through a combination of Nordstrom family and Liverpool rollover equity, Liverpool cash commitments, up to $450 million in borrowings under new $1.2 billion ABL bank financing, and company cash on hand.
The Nordstrom family tried and failed to take the company private in 2018 for $8.4 billion after members and the board as constituted at the time couldn’t get together on a price.
