Nordstrom confirms buyout bid received from members of the founding family
By Tomi Kilgore
Bid of $23 a share represents a less-than-1% premium to Tuesday's closing price
Nordstrom Inc. confirmed Wednesday that it has received a buyout bid from members of the family that founded the department-store chain and Mexico-based retailer El Puerto de Liverpool SAB.
Under terms of the buyout proposal, Erik and Pete Nordstrom, other Nordstrom family members and Liverpool would pay $23 for each outstanding share (JWN) that they don't already own. That represents a 0.8% premium to Tuesday's closing price of $22.82.
With about 163.65 million shares outstanding, the buyout bid values Nordstrom at $3.76 billion.
Erik Nordstrom is chief executive of the company and Pete Nordstrom is president.
Nordstrom's stock rose 0.4% in premarket trading toward a seven-week high.
The bid comes about five months after Nordstrom said it formed a special committee to explore a sale, after Erik and Pete Nordstrom had expressed interest in buying the company.
"The special committee and the other independent directors will carefully review the proposal in consultation with independent financial and legal advisors to determine the course of action that is in the best interests of Nordstrom and all shareholders," the company said in a statement.
Nordstrom said current shareholders are not required to take any action.
The buyout bid would be financed through a combination of rollover equity and cash commitments by the Nordstrom family and Liverpool, as well as $250 million in new bank financing.
Nordstrom's stock has rallied 23.7% year to date through Tuesday, while the S&P 500 has advanced 15.9%.
-Tomi Kilgore
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09-04-24 0931ET
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