The American retail department store, Nordstrom, is set to be taken private by its founding family members in association with El Puerto de Liverpool, a Mexican retail company. The move comes as part of a growing trend of traditional retailers looking to maneuver the turbulent retail market away from public scrutiny. Nordstrom’s shares saw a significant surge on the initial news of the takeover.
The founding family currently owns 31.2% of the company’s shares and has been actively pursuing the option to reclaim the company completely. They have been in negotiations with potential investors, with El Puerto de Liverpool now secured as their backer for the takeover. The company, which is the leading department store in Mexico, views the acquisition of Nordstrom as a strategic move in diversifying its holdings and boosting presence in the international market. If successful, this merger would solidify El Puerto’s status as a significant player in North American retail.
The agreement would also put control of Nordstrom back in the hands of the Nordstrom family, which has been associated with the company since its establishment in 1901. Reports suggest that the family members intend to maintain the upmarket brand’s long-established reputation for superior customer service and high-end products, while protecting the retailer from the volatility of the market.
This announcement of Nordstrom’s acquisition follows recent trends of privately-owned retailers, such as fellow department store chain Neiman Marcus, which was recently acquired by Ares Management and the Canada Pension Plan Investment Board. This restructure away from publicly traded companies allows these retailers to navigate the transitioning retail industry with more flexibility in decision making and long-term planning.
Details of the Nordstrom takeover are yet to be fully disclosed, including the final buyout price per share and the tentative timeframe for the completion of the transaction. However, the Nordstrom family and El Puerto de Liverpool remain confident in their joint decision to take Nordstrom private. Both companies emphasize their planned mutual benefits and shared vision for future success.
Last modified: December 23, 2024
