Nordstrom (JWN, Financial) announced its agreement to be acquired by a consortium led by Eric and Peter Nordstrom, descendants of the company's founder, and Mexican retail chain El Puerto de Liverpool. This acquisition will privatize Nordstrom and marks a strategic shift for the company. Under the terms, the Nordstrom family will hold a 50.1% majority stake, while Liverpool will own 49.9%, in an all-cash transaction.
Following the privatization news, Nordstrom's stock price has outperformed the market and competitors like Macy's (M), Kohl's (KSS), and Dillard's (DDS) in 2024. The acquisition price for common shareholders is set at $24.25 per share, a 42% premium since the privatization talks began in March.
Nordstrom has recently made significant progress with its customer-centric strategy, showing improved earnings and revenue in the second fiscal quarter, with digital sales up 6.2% year-over-year. Analysts believe the acquisition will offer Nordstrom greater flexibility to navigate retail industry changes and reduce public market pressures. However, the ownership change could impact key suppliers such as Levi's (LEVI), Lululemon Athletica (LULU), Under Armour (UAA), and Steve Madden (SHOO).
