Nordstrom Inc. is going private.
As expected, the Seattle-based retailer said Monday that it signed a definitive agreement under which the Nordstrom family and Mexican retailer El Puerto de Liverpool will acquire all of the outstanding shares of Nordstrom not beneficially owned by the Nordstrom family and Liverpool. It’s an all-cash transaction with an enterprise value of about $6.25 billion.
The announcement confirms a Dec. 18 report in WWD that the deal was imminent.
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Nordstrom common shareholders will receive $24.25 in cash for each share of common stock they hold. The deal represents a premium of about 42 percent to the company’s closing stock price on March 18, which was the last trading day prior to media speculation about the potential transaction.
Nordstrom’s board has approved the buyout. Nordstrom Inc. is led by brothers Erik and Pete, chief executive officer and president and chief brand officer, respectively, as well as their cousin Jamie, who serves as chief merchandising officer.
The board approved the deal upon the recommendation of a special committee of independent directors that conducted a review of the transaction proposal submitted earlier this year.
“The special committee of the Nordstrom board of directors reviewed this proposal against the company’s standalone prospects for growth,” said Eric Spunk, chairman of the special committee, in a statement Monday. Sprunk said the deal offers “greater value for all public shareholders at a significant premium to the unaffected share price.”
Also, common shareholders will receive a special dividend of up to $0.25 per share based on cash on hand at the close of the transaction. Nordstrom stock closed Friday at $24.53.
