Nordstrom (JWN) stock is trading lower today despite the announcement that the storied retailer is being sold and taken private.
The company announced this morning that it would become a private company in a deal valued at deal valued at $6.25 billion. The purchase was agreed to by the founding family and El Puerto de Liverpool, a Mexican retailing company.
Details of the deal show that investors will receive $24.25 in cash for each share of Nordstrom common stock they hold. The stock is trading slightly below that price.
The pricing of the deal is slightly higher than an offer floated by the founding family of Nordstrom’s. In September 2018. That deal offered $23 per share to investors.
The Board approved deal to sell to El Puerto de Liverpool allows the Nordstrom family to retain controlling ownership of the company with 50.1% of the company’s shares.
Nordstrom stock has struggled since before the Pandemic.
Shares traded at $55 in 2018 and had been cut in half ahead of the Pandemic in 2020. During the Pandemic, Nordstrom’s stock fell as low as $10.41.
The stock recovered with the rest of the retail space. In 2021, Nordstrom’s rallied back to $40 per share but fell back into a bear market trend as high-end consumers cut back on their spending. Other retailers in the high-end sector also struggled during that period.
Nordstrom’s Board expects the deal to close in the first half of 2025.
