Members of the Nordstrom family along with Liverpool, a Mexican retailer that has recently been expanding relationships with U.S.-based companies, will take the storied luxury department store private in an all-cash deal valued at approximately $6.25 billion. The transaction, expected to close during the first half of 2025, will give the family members 50.1% ownership of the company and 49.9% to Liverpool.
Nordstrom and Liverpool have been financially involved since at least September 2022, when Liverpool took a 9.9% passive stake in Nordstrom in a $294 million deal that made Liverpool one of the retailer’s largest shareholders.
Erik and Pete Nordstrom, the CEO and President, respectively, of Nordstrom, first floated plans to take the retailer private in March 2024. In September 2024, Nordstrom family members and Liverpool made a $3.76 billion offer to take the company private. With this current deal, Nordstrom common shareholders will receive $24.25 per share in cash.
The transaction will be financed with a combination of rollover equity by the Nordstrom Family and Liverpool, cash commitments by Liverpool, up to $450 million in borrowings under a new $1.2 billion ABL [asset-based lending] bank financing and cash on hand.
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“For over a century, Nordstrom has operated with a foundational principle of helping customers feel good and look their best,” said Erik Nordstrom in a statement. “Today marks an exciting new chapter for the business. On behalf of my family, we look forward to working with our teams to ensure Nordstrom thrives long into the future.”
WHP Global expanded its relationship with Liverpool in January 2024 to bring the Babies ‘R’ Us brand to Mexico, and Fabletics announced its partnership with Liverpool to expand into Mexico in October 2024.