Nordstrom agrees to be privatized by its founding family in a $6.25 billion deal

(Reuters) – Nordstrom has agreed to be acquired by its founding family and Mexican retailer El Puerto de Liverpool. The luxury department store operator is worth about $6.25 billion including debt.

The company’s shareholders will receive $24.25 in cash for each share held, an increase from the offer made in September of $23 apiece.

The offer price represents a 42% premium to the stock’s unaffected closing price on March 18. Reuters exclusively reported on March 19 that the founding family was looking to take Nordstrom private, six years after a similar attempt proved unsuccessful.

Shares of Nordstrom were down nearly 2% before the bell on Monday.

The acquisition gives the family of CEO Erik Nordstrom and President Pete Nordstrom a majority stake in the company and comes at a time when department store chains across the U.S. are struggling with subdued sales amid higher costs.

In response to Erik and Pete Nordstrom’s expressed interest in a potential deal, Nordstrom formed a special committee in February.

The transaction is expected to be completed in the first half of 2025, the company said.

(Reporting by Savyata Mishra in Bengaluru; Editing by Sriraj Kalluvila and Devika Syamnath)