The Nordstrom household has supplied to purchase its namesake division retailer chain for $23 per share in money with plans to take the retailer non-public for $3.8 billion.
Erik and Peter Nordstrom, the nice grandsons of founder John Nordstrom, stated they’d been exploring methods to take the corporate non-public, based on a press release on Wednesday. The brothers shaped a bunch with different relations and a Mexican division retailer chain El Puerto de Liverpool, which took a virtually 10 % stake within the firm two years in the past.
The proposed transaction can be financed via a mixture of fairness and money commitments by relations and Liverpool, in addition to $250 million in new financial institution financing. Following the proposed transaction, the corporate can be 50.1 % owned by the household and 49.9 % by Liverpool, which operates 312 shops in Mexico.
The group stated the provide represented a 34.8 % premium over the place the corporate’s shares have been buying and selling on March 18, when experiences of discussions between the corporate and household surfaced. Nordstrom’s shares have risen 24 % yr up to now via Tuesday’s shut.
Nordstrom’s board of administrators confirmed it had acquired the provide and {that a} particular committee that included “unbiased and disinterested administrators” would evaluate the proposal.
Puerto de Liverpool stated in a separate assertion the proposal represents a brand new capital funding by Liverpool of a minimum of $1.2 billion, which might be coated partially with its personal assets and one other half with financing.
By Max Zimmerman
Study extra:
Buyout Agency Sycamore Vies to Take Nordstrom Non-public, Sources Say
Nordstrom shares rose 6 % on the information, giving the corporate a market worth of about $3.3 billion.
