Nordstrom to Go Private: Founding Family and El Puerto de Liverpool Join Forces in $6.25 Billion Deal
Nordstrom has revealed plans to transition back into a privately held company through a strategic acquisition led by its founding family and the Mexican retail giant, El Puerto de Liverpool.
This all-cash transaction, valued at $6.25 billion, comes nearly a year after the formation of a special committee to evaluate proposals from the Nordstrom family. In September, the family and El Puerto de Liverpool proposed a $23-per-share buyout. On Monday, Nordstrom announced the final agreement, increasing the offer to $24.25 per share—a 42% premium over the stock’s closing price on March 18, 2024, prior to rumors of the deal.
“The Nordstrom Board’s special committee carefully reviewed the offer, weighing it against the company’s long-term growth potential,” said Board Chairman Brad Tilden. “After thorough evaluation and consultation with independent financial and legal experts, we unanimously determined this transaction delivers significant value to shareholders.”
The acquisition, expected to close in the first half of 2025, requires approval from shareholders. This includes two-thirds of all shareholders, a majority of those unaffiliated with the Nordstrom family or El Puerto de Liverpool, and certain executives.
Once finalized, Nordstrom will no longer be a publicly traded company—a status it has held since its 1971 initial public offering. The Nordstrom family will own a majority stake of 50.1%, with El Puerto de Liverpool holding the remaining 49.9%.
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CEO Erik Nordstrom called the deal “a pivotal and exciting step” for the company. Founded in 1901 by John W. Nordstrom and Carl Wallin, the retailer began as a small Seattle shoe store and remains headquartered in the city.
By the close of the third quarter of 2024, Nordstrom operated 93 department stores, six Nordstrom Local hubs, 280 Nordstrom Rack locations, and two Last Chance clearance outlets. Over the first three quarters of the year, the company reported $10.69 billion in revenue and $128 million in net earnings.
Nordstrom projects flat to 1% revenue growth for 2024, compared to fiscal 2023. Its market value was approximately $3.99 billion as of Monday morning.
This milestone transaction signals a new chapter in Nordstrom’s legacy, combining the vision of its founding family with the expertise of El Puerto de Liverpool to drive future success.
