Company With Middletown Store To Go Private In $6.25 Billion Deal

December 23, 2024

The sign outside of Lincoln Plaza in December. Credit: Tom Sofield/LevittownNow.com

The company that owns the Nordstrom Rack location in the Lincoln Plaza shopping center will soon see significant changes as part of a deal announced Monday.

In a statement, Nordstrom Inc. revealed that members of the Nordstrom family, including Erik, Pete, and Jamie Nordstrom, along with Mexican retail group El Puerto de Liverpool, S.A.B. de C.V., will acquire all shares of the department store chain.

The move will take the century-old company private, with the Nordstrom family owning a majority stake.

The deal, which is valued at $6.25 billion, aims to provide the company with greater flexibility in navigating a rapidly evolving retail landscape shaped by competition from in-person and online shopping.

Nordstrom shareholders will receive $24.25 in cash per share, representing a 42 percent premium over the company’s closing stock price on March 18, 2024, before reports of the transaction surfaced. The company also plans to issue a special dividend of up to $0.25 per share contingent on the deal’s closure, according to a statement.

The Nordstrom board of directors unanimously approved the transaction after an independent review by a special committee of directors.

Eric Sprunk, chairman of the special committee, called the deal a compelling opportunity for shareholders.

“The special committee of the Nordstrom Board of Directors reviewed this proposal against the Company’s standalone prospects for growth,” said Sprunk. “Following a rigorous and independent evaluation and consultation with outside financial and legal advisors, the special committee unanimously concluded that this transaction offers greater value for all public shareholders at a significant premium to the unaffected share price.”

Nordstrom CEO Erik Nordstrom described the decision as a pivotal moment for the company.

“For over a century, Nordstrom has operated with a foundational principle of helping customers feel good and look their best,” said Erik Nordstrom. “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.”

Pete Nordstrom, the company’s chief brand officer, shared the sentiment and shared gratitude to employees, customers, and shareholders for their role in shaping Nordstrom’s success since its founding in 1901.

The transaction, expected to close in the first half of 2025.

The company currently operates more than 350 Nordstrom, Nordstrom Rack, and Nordstrom Local locations across the U.S. and Canada.