Nordstrom to be acquired by Nordstrom family and a Mexican retail group in $6.25 billion deal

Source: Associated Press

Business
Nordstrom to be acquired by Nordstrom family and a Mexican retail group in $6.25 billion deal

By MATT OTT
Updated 9:55 AM EST, December 23, 2024

Century-old department store Nordstrom has agreed to be acquired and taken private by Nordstrom family members and a Mexican retail group in a $6.25 billion deal with the industry being squeezed by discount chains and other competition.

Public companies are under a lot more scrutiny and if private, the Nordstroms may have more leeway in reviving a department store chain that, like others, has looked to revive lackluster sales for years.

Nordstrom shareholders will receive $24.25 in cash for each share of Nordstrom common stock, or about $4 billion in all, representing a 42% premium on the company’s stock as of March 18, when reports of a potential transaction was reported by the media. ... The Nordstroms will also pick up more than $2 billion in debt.

Rivals like Macy’s and Kohl’s have been pressured by major investors to make huge changes in order to return more profit to shareholders. The traditional department stores are facing competition from giants like Walmart and Target, as well as a host of fast-fashion bands and Amazon.com.

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Read more: https://apnews.com/article/nordstrom-liverpool-acquisition-private-e802942a18e1afd99dcd9857a946b7ce