The Nordstrom family is buying back the department store chain that bears its name in an all-cash deal valued at $6.25 billion.
Their final offer, which has been approved by the company’s board, was a substantial increase from their initial bid of $3.8 billion. The deal, which is expected to close in the first half of 2025, will make the Nordstroms majority owners. They currently own 33% of Nordstrom, Inc.’s stock, and are making the purchase in conjunction with Mexican retailer El Puerto de Liverpool, which owns 9.4%.
The family group is led by company CEO Erik Nordstrom and his brother Peter, Nordstrom’s chief brand officer, as well as their cousin Jamie Nordstrom, its chief merchandising officer. They are the fourth generation of their family to head the retailer.
Upon the deal’s closing, Nordstrom, Inc. will be privately owned for the first time since 1971. The family unsuccessfully tried to buy back the Seattle-based business in 2018.
Nordstrom shareholders will receive $24.25 in cash for each share of Nordstrom common stock they hold, a 42% premium over the share price on March 18, 2024, the last day before the media began to speculate about a deal.
GlobalData managing director Neil Saunders told Retail Dive that he thought the new owners have “the talent and ability” to run the company.
“They will likely run the business as a retailer rather than as some kind of financial plaything,” he said.
The chain currently has more than 350 locations, the majority of which are off-price Nordstrom Racks.
Top: Nordstrom’s New York City flagship (credit: Connie Zhou; photo courtesy of Nordstrom)
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