Nordstrom Inc. Announces Transition to Private Ownership

In a significant shift in its business structure, Nordstrom Inc., the renowned Seattle-based retailer, has announced its decision to transition from a public company to a private entity. The move involves a definitive agreement where the Nordstrom family, in collaboration with the Mexican retailer El Puerto de Liverpool, will purchase all outstanding shares of Nordstrom not already under their control. This all-cash transaction is valued at approximately $6.25 billion.

This decision reflects the culmination of developments that began with speculative media reports earlier this year, highlighting potential changes in the company’s ownership. With this agreement, Nordstrom aims to fortify its business and focus more intensively on long-term strategies without the regular pressures faced by public companies.

The buyout price set at $24.25 per share represents a 42 percent premium over the stock’s price before the buyout rumors surfaced, showcasing the value the investors see in taking Nordstrom private. The transaction is anticipated to close in the first half of 2025, subject to regulatory approvals and other customary closing conditions.

Nordstrom’s leadership, including CEO Erik Nordstrom, President Pete Nordstrom, and Chief Merchandising Officer Jamie Nordstrom, have expressed their commitment to enhancing customer service and continuing the company’s legacy of high-quality retailing. The deal is seen as an opportunity to focus more deeply on customer experience and operational efficiency.

Financing for the buyout will be achieved through a mix of rollover equity by the Nordstrom family and Liverpool, alongside new financial commitments and existing company resources. Despite the change in ownership status, Nordstrom will continue its operations with significant influence from both the Nordstrom family and Liverpool, each holding substantial stakes in the business.