Nordstrom Inc. confirmed on Wednesday that it has received a buyout bid from members of the founding Nordstrom family and Mexico-based retailer El Puerto de Liverpool SAB. The proposed offer, led by Erik and Pete Nordstrom, along with other family members and Liverpool, would value Nordstrom at $3.76 billion. They plan to pay $23 per share for outstanding stock they don’t already own, a slight 0.8% premium over the previous closing price of $22.82.
With approximately 163.65 million shares in circulation, the deal is a significant move for the department-store chain. Erik Nordstrom, the company’s CEO, and Pete Nordstrom, its president, are leading the buyout alongside Liverpool.
The proposal arrives five months after Nordstrom formed a special committee to explore potential sales opportunities, following expressed interest from the Nordstrom brothers. In response, the company stated that independent directors, along with legal and financial advisors, would carefully review the bid to ensure it aligns with the best interests of the company and its shareholders.
Nordstrom emphasized that shareholders are not required to take immediate action. The deal would be financed through a mix of rollover equity, cash contributions from the Nordstrom family and Liverpool, along with $250 million in new bank financing.
Year to date, Nordstrom’s stock has surged 23.7%, outperforming the broader market, with the S&P 500 rising by 15.9% during the same period. Nordstrom’s stock saw a 0.4% increase in premarket trading, pushing it toward a seven-week high.
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