Nordstrom, the iconic American retailer, is set to become a private company after its founding family and Mexican department store chain El Puerto de Liverpool agreed to a buyout deal worth approximately $6.25 billion. The deal, which the company’s board unanimously approved, is expected to close during the first half of 2025.
Under the agreement, Nordstrom’s founding family will hold a majority 50.1% stake, while Liverpool will own 49.9%. Shareholders of Nordstrom’s common stock will receive $24.25 per share in cash.
Erik Nordstrom, CEO of the company, expressed enthusiasm for the transition, saying, “This marks an exciting new chapter for Nordstrom. My family and I look forward to working with our teams to ensure the business continues to thrive long into the future.”
The move to go private follows a history of similar attempts, including a failed effort in 2018. Earlier this year, the Nordstrom family offered $23 per share to take the company private, valuing it at $3.76 billion.
Despite this development, Nordstrom shares dipped slightly in early trading. However, they had experienced growth following reports in March of the family’s intentions to privatize the company.
Nordstrom recently surpassed Wall Street’s expectations for its fiscal third-quarter sales, with revenue climbing 4% year-over-year. However, the company tempered its outlook for the year, anticipating softer holiday sales due to cautious consumer spending.
The luxury retail market has faced significant challenges, as customers prioritize essentials over discretionary purchases. Competitors like Walmart and Target have also reported similar trends.
Founded in 1901 as a shoe store, Nordstrom has since evolved into a high-end department store offering a diverse range of clothing and accessories. The company operates over 350 locations under its Nordstrom, Nordstrom Local, and Nordstrom Rack banners.
El Puerto de Liverpool, one of Mexico’s largest retailers, owns the Liverpool and Suburbia chains, as well as 29 shopping centers across Mexico. Through this partnership, Liverpool aims to strengthen its international presence while supporting Nordstrom’s continued growth.
This deal signals a new direction for Nordstrom, promising closer alignment between its leadership and long-term strategic goals as it steps away from the public market.
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