Nordstrom to go private in $6.25 billion deal with founding family

Nordstrom on mondays announced will become a private company after reaching a purchase agreement valued at approximately $6.25 billion from the founding family of Nordstrom and Mexican department store El Puerto de Liverpool.

The company’s board of directors unanimously approved the transaction, which is expected to close in the first half of 2025.

As part of the deal, the Nordstrom family will have majority ownership of the company, with 50.1%, and Liverpool will own 49.9%. Common shareholders will receive $24.25 in cash for each share of Nordstrom common stock they own, according to a news release.

“For more than a century, Nordstrom has operated on the founding principle of helping customers feel good and look their best,” Nordstrom CEO Erik Nordstrom said in a news 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 well into the future.”

It’s not the first time the retailer has tried to go private. A previous effort vanished in 2018. In September, the Nordstrom family offered $23 per share for the chain, which valued the company at approximately $3.76 billion.

Nordstrom shares fell about 1% in early trading. The company’s shares have soared since a Reuters report in March that the family wanted to privatize the company.

Nordstrom beat wall street sales expectations in November for the fiscal third quarter, as revenue grew approximately 4% year over year. But the company gave only a slightly more optimistic sales forecast for the full year, as it said it expected a soft holiday season.

Luxury clothing stores have been under pressure as retailers like Walmart, Best buy and Aim They have reported that customers remain picky when it comes to purchasing items they want, not needs, and have paid more attention to price.

Nordstrom was founded as a shoe store in 1901 before becoming a department store selling a wide variety of clothing and accessories at more than 350 Nordstrom, Nordstrom Local and Nordstrom Rack locations.

The Port of Liverpool operates two other department store chains, Liverpool and Suburbia, and owns 29 shopping centers throughout Mexico.