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Key Takeaways
- Chief Executive Officer (CEO) Erik Nordstrom and President Peter Nordstrom have teamed with Mexican retailer El Puerto de Liverpool in an attempt to take their namesake company private.
- The group offered $23 per share, a slight premium to Tuesday’s closing stock price, in a deal valued at almost $3.8 billion.
- The Nordstrom family owns a 33.4% stake in the company, while Liverpool owns about 10%.
Nordstrom (JWN) Chief Executive Officer (CEO) Erik Nordstrom and other members of the company’s founding family have made a bid to take the fashion retailer private for $23 per share, according to n Securities and Exchange Commission (SEC) filing.
On Tuesday, Erik Nordstrom and Peter Nordstrom, the company’s president, together with El Puerto de Liverpool, submitted a non-binding letter containing the offer. The Nordstrom family owns a 33.4% stake in the company, while Liverpool, a department store operator based in Mexico, owns nearly 10%.
The offer, which values the company at about $3.76 billion, is a less than 1% premium on Tuesday’s closing price. It comes months after a report said people familiar with the matter indicated that the family was exploring a potential deal.
Not Nordstrom Family’s First Offer
The Nordstrom family has made prior attempts to take the company private. In 2017, a group of family members made a similar effort that was ultimately suspended, and in March 2018, Nordstrom’s board rejected a higher, roughly $8.4 billion, bid from the founding family.
Erik and Peter Nordstrom are the great-grandsons of John Nordstrom, who founded the company in 1901.
Shares of Nordstrom were up 0.4% at $22.92 in early afternoon trading Wednesday. So far this year, they’ve added nearly a quarter of their value.