On Monday, it was announced that the Nordstrom family and a Mexican department store chain will buy Nordstrom for $6.25 billion.

The transaction will lead to El Puerto de Liverpool and members of the Nordstrom family acquiring all outstanding common shares of the company, according to the announcement.

With over 350 locations, Nordstrom will transition from a publicly traded to a privately owned entity, resulting in the Nordstrom family holding a majority stake in the company.

As per reports from Digital Commerce 360, the Nordstrom family currently holds a 33.4% stake in the company. Liverpool has a 9.6% stake, which it obtained in 2022 for around $300 million.

“For more than 100 years, we’ve focused on helping customers look and feel their best,” stated Erik Nordstrom, CEO of Nordstrom. “Today signifies an exciting new phase for our company. My family and I are eager to collaborate with our teams to ensure Nordstrom’s long-term success.”

What Payment Will Common Shareholders Receive?

According to the agreement, each common shareholder of Nordstrom will be compensated $24.25 in cash for each share they own. This figure reflects a 42% premium based on the closing stock price on March 18, which was the last trading day before media speculation about the acquisition surfaced.

Furthermore, Nordstrom’s board plans to authorize a special dividend of up to $0.25 per share right before closing the deal, contingent on the transaction’s success. This dividend is founded on the available cash at Nordstrom.

The Nordstrom Board of Directors, with Erik and Pete Nordstrom recusing themselves, unanimously supported the proposed deal following insights from a special committee that oversaw the negotiation and review process.

“The special committee determined that this transaction provides a better value for all public shareholders with a significant premium to the unaffected share price,” indicated Eric Sprunk, chair of the special committee.

When Will the Nordstrom Deal Close?

The acquisition of Nordstrom is projected to finalize in the first half of 2025.

The ownership breakdown will be 50.1% held by the Nordstrom family and 49.9% by Liverpool, as stated in the release.

With Nordstrom becoming a private entity, its common stock will no longer be listed on public exchanges. On the last trading day, Nordstrom’s stock closed at $24.17.