AI-assisted summary
• The deal will take Nordstrom private, with the Nordstrom family holding a majority ownership stake.
• Nordstrom shareholders will receive $24.25 in cash for each share of common stock they own, plus a potential special dividend of up to $0.25 per share.
• The transaction is expected to close in the first half of 2025.

Nordstrom is going to be acquired for $6.25 billion by Nordstrom family members and a Mexican department store chain, the department store chain announced on Monday.

Upon completion of the transaction, all outstanding common shares of Nordstrom will be acquired by El Puerto de Liverpool and Erik Nordstrom, Pete Nordstrom, Jamie Nordstrom, and other members of the Nordstrom family, according to the department store chain's news release.

Nordstrom, which has more than 350 locations, will go from public to private as a result of the deal and the Nordstrom Family will have a majority ownership stake, according to the company.

Members of the Nordstrom family collectively own 33.4% of the company, reported Digital Commerce 360, an e-commerce research and media outlet. Liverpool, which operates more than 300 stores and an e-commerce platform, holds a 9.6% stake in Nordstrom which it acquired in 2022 for about $300 million, the outlet said.

"For over a century, Nordstrom has operated with a foundational principle of helping customers feel good and look their best," Erik Nordstrom, chief executive officer of Nordstrom, said 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." 

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What will common Nordstrom shareholders receive?

Per the agreement, Nordstrom's common shareholders will receive $24.25 in cash for each share of the company's common stock that they hold, according to the announcement. The company got to this number based on a premium of 42% to the company's unaffected closing common stock price on March 18, which was the final trading day before media speculation about a potential transaction, the company said

In addition to the payout, the board intends to authorize a special dividend of up to $0.25 per share immediately before and contingent on the close of the deal, according to Nordstrom. This dividend is based on Nordstrom's cash on hand, the company said.

The Nordstrom Board of Directors, excluding Erik and Pete Nordstrom after they recused themselves, unanimously approved the proposed deal based on the input from a special committee that led the review and negotiation process.

"The special committee unanimously concluded that this transaction offers greater value for all public shareholders at a significant premium to the unaffected share price," Eric Sprunk, chairman of the special committee, said in a statement.

When will the deal for Nordstrom be completed?

The deal for Nordstrom is expected to close in the first half of 2025, according to the company.

The breakdown in Nordstrom's ownership will be 50.1% by the Nordstrom Family and 49.9% by Liverpool, the release reads.

Since Nordstrom will go private, the company's common stock will no longer be listed on public markets. When the market closed on Monday, Nordstrom's stock was at $24.17.