Brothers Erik and Peter Nordstrom submitted a nearly $4 billion bid today to take the famed department store that bears their family name private, the company announced.
Erik, who is the upscale retailer’s CEO, and Peter, its president and chief brand officer, are leading a group of investors offering $23 a share—which would value the company at $3.8 billion.
That is not much of a premium over its current stock price, which at press time was $22.79 a share. It does represent a 35% jump from earlier this year, when rumors of a takeover first circulated.
Backing up the brothers are unnamed family members, as well as Mexican retail chain El Puerto de Liverpool, which currently controls 9.4% of Nordstrom’s shares. (The Nordstroms own 33%). The deal will be financed through equity and cash commitments and $250 million in new bank financing.
Erik and Peter are the fourth generation of their family to head the Seattle-based company. Founded in 1901, it now comprises 370 stores—269 of which are the off-price Nordstrom Rack chain.
Nordstrom first went public in 1971. The family tried, and failed, to take the company private in 2018.
Its board has formed a special committee to evaluate the offer, and warns there’s no guarantee that an offer will be consummated.
(Photo courtesy of Nordstrom)
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