Luxury department store chain Nordstrom has announced a $6.25 billion acquisition deal with its founding family and Mexican retailer El Puerto de Liverpool. Following the deal, Nordstrom will become a private company. The company's board has unanimously approved the transaction, which is expected to close in the first half of 2025.
Under the agreement, the Nordstrom family will hold a 50.1% majority stake, while El Puerto de Liverpool will own 49.9%. Shareholders will receive $24.25 in cash for each Nordstrom common share. This move follows a previous privatization attempt in 2018 that was unsuccessful.
In its third fiscal quarter ending in November, Nordstrom exceeded Wall Street sales expectations with a 4% year-over-year revenue increase. However, the company remains cautious in its annual sales forecast, anticipating a weak holiday season. Luxury retailers face challenges as consumers prioritize essential purchases over discretionary items, impacting sales at stores like Walmart, Best Buy, and Target.
