Nordstrom to be acquired by Nordstrom family and a Mexican retail group in $6.25 billion deal
Business
The acquiring group will also pick up more than $2 billion in Nordstrom debt
PITTSBURGH (AP) – Century-old department store Nordstrom has agreed to be acquired and taken private by Nordstrom family members and a Mexican retail group in a $6.25 billion deal with the industry being squeezed by discount chains and other competition.
Public companies are under a lot more scrutiny and if private, the Nordstrom may have more leeway in reviving a department store chain that has been attempting to reinvigorate sales for years.
Nordstrom shareholders will receive $24.25 in cash for each share of Nordstrom common stock, or about $4 billion in all, representing a 42% premium on the company’s stock as of March 18, when reports of a potential transaction was reported by the media.
The acquiring group will also pick up more than $2 billion in Nordstrom debt.
The traditional department stores have suffered in the face of withering competition from giants like Walmart and Target, as well as a host of fast-fashion bands and Amazon.com. Nordstrom rivals Macy’s and Kohl’s have been pressured by major investors to make huge changes in order to return more profit to shareholders.
