Nordstrom is returning to its roots as a private company. The founding family of the iconic department store chain, in partnership with Mexican retailer El Puerto de Liverpool, has finalized a $6.25 billion all-cash deal to acquire the company. Recently approved by Nordstrom’s board, the deal values shares at $24.25 each and includes existing debt.
The agreement marks the Nordstrom family’s second attempt to go private after a failed bid nearly seven years ago. For the retailer, the move offers more flexibility to pursue long-term growth strategies — including in ecommerce — without the pressure of quarterly financial reporting.
Nordstrom ranks No. 23 in Digital Commerce 360’s Top 1000 Database of the largest online retailers in North America, where it falls under the Apparel & Accessories category. The retailer operates the Nordstrom and Nordstrom Rack brands. Digital Commerce 360 projects Nordstom’s online sales will reach $5.28 billion in 2024.
Nordstrom web sales by year
Nordstrom family’s second attempt to take company private
Founded in 1901 as a Seattle-based shoe store, Nordstrom went public in 1971. This is the second buyout attempt by the Nordstrom family, following a 2018 bid valued at $8.4 billion, which was rejected by the board.
In February 2024, Nordstrom’s board formed a special committee of independent directors after CEO Erik Nordstrom and president Peter Nordstrom expressed renewed interest in taking the company private. At the time, the family owned 33.4% of the company, while El Puerto de Liverpool held a 9.6% stake, acquired in 2022 for approximately $300 million.
By September 2024, the family and Liverpool proposed a $23-per-share buyout offer. After review, the board approved a revised offer of $24.25 per share — a 42% premium over the stock’s price on March 18, when reports of the buyout first emerged.
Erik and Peter Nordstrom recused themselves from the final vote, and the board unanimously approved the transaction.
“Following a rigorous and independent evaluation and consultation with outside financial and legal advisors, the special committee unanimously concluded that this transaction offers greater value for all public shareholders at a significant premium to the unaffected share price,” said Eric Sprunk, who is chairman of the special committee and former COO of Nike, in a statement.
Nordstrom deal’s financing details
Under the agreement, the Nordstrom family will own 50.1% of the company, while Liverpool will hold 49.9%.
The deal will be financed through:
- A mix of equity contributions from the Nordstrom family and El Puerto de Liverpool
- Cash commitments from Liverpool
- Up to $450 million in new borrowings under a $1.2 billion asset-backed loan
- Company cash reserves
Nordstrom’s existing $2.7 billion in debt will remain in place after the transaction.
As part of the deal, Liverpool will gain a seat on Nordstrom’s board, giving the Mexican retailer more influence over strategic decisions. Liverpool ranks No. 30 in Digital Commerce 360’s Top 1000, with 2024 online sales projected to hit $3.89 billion.
The deal is expected to close in the first half of 2025, pending regulatory approval.
Ecommerce and digital growth remain a focus
The deal comes as Nordstrom works to enhance its ecommerce business and drive digital growth.
Earlier this year, the company announced a new online marketplace on Nordstrom.com and an enhanced search feature. The marketplace broadens its product selection, with more brands, sizes, and styles, while giving partners like Mulberry and Adore Me increased visibility.
Recent sales performance paints a mixed picture. For the 2023 fiscal year ending Feb. 3, 2024, Nordstrom reported $14.22 billion in total sales, down from $15.08 billion in 2022. Online sales made up 36% of total Nordstrom sales for the year.
However, the company showed growth across the first three quarters of fiscal 2024:
- Q1: Net sales rose 5.1% year over year for the quarter ended May 4.
- Q2: Net sales increased 4% to $3.79 billion, with digital sales accounting for 37% of revenue, up from 36% the previous year.
- Q3: Net sales climbed 4.6% to $3.3 billion for the quarter ended Nov. 2. Digital sales grew 6.4%, with online successes particularly visible at Nordstrom Rack, according to the retailer.
Nordstrom Rack continues to play a key role in the company’s growth. Rack launched the option for buy online, pick up in store (BOPIS) at more than 100 locations in Q3. Since the start of fiscal 2024, Nordstrom has opened 23 Nordstrom Rack stores and plans to open at least 15 more in 2025.
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