SEATTLE - Nordstrom Inc . (NYSE: NYSE:JWN) announced today that it has entered into a definitive agreement for a family-led buyout, with the Nordstrom family and El Puerto de Liverpool (BMV: LIVEPOL) acquiring all outstanding common shares not already owned by them. The deal values the retailer at approximately $6.25 billion on an enterprise basis. Liverpool, currently valued at $7.06 billion, brings significant financial strength to the partnership with a GREAT financial health score according to InvestingPro analysis.
Under the agreement, Nordstrom shareholders will receive $24.25 in cash for each share, a 42% premium over the stock price on March 18, 2024, before speculation about a potential deal began. Additionally, the board plans to issue a special dividend of up to $0.25 per share, contingent on the deal's closure. Liverpool enters this deal from a position of financial strength, with InvestingPro data showing a conservative debt-to-equity ratio of 0.28 and healthy current ratio of 1.81, indicating strong liquidity.
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The transaction has been unanimously approved by the Nordstrom board, with Erik and Pete Nordstrom, who are part of the buying group, recusing themselves. A special committee of independent directors led the negotiation, concluding that the buyout offers significant value to shareholders.
Erik Nordstrom, CEO, expressed enthusiasm for the new chapter that will see the company go private, while Pete Nordstrom, chief brand officer, reaffirmed the commitment to customer service. Graciano F. Guichard G., executive chairman of Liverpool, highlighted Nordstrom's legacy and the opportunity this partnership represents. Liverpool brings strong operational performance to the partnership, with revenue growth of 9.22% and maintaining profitability with a P/E ratio of 6.42.
The transaction, expected to close in the first half of 2025, is subject to regulatory approvals and the affirmative vote of two-thirds of Nordstrom's common stock, including a majority of shares not owned by the Nordstrom family or Liverpool. Financing includes equity from the Nordstrom family and Liverpool, bank financing, and company cash on hand.
Until the deal's completion, Nordstrom expects to continue paying its regular quarterly cash dividends. After the close, Nordstrom's stock will be delisted from public markets.
Morgan Stanley (NYSE:MS) & Co. LLC and Centerview Partners LLC are advising the special committee, while Moelis (NYSE:MC) & Company LLC and J.P. Morgan Securities LLC are advising the Nordstrom family and Liverpool, respectively.
This significant move for the century-old retailer comes as it seeks to adapt to the evolving retail landscape and focus on long-term strategy without the pressures of public market performance.
The information in this article is based on a press release statement.
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