Nordstrom is now a private company following a private equity deal worth a whopping $6.25 billion.
CNBC is reporting that the Mexican department store El Puerto de Liverpool and the founding family of Nordstrom were acquired in the buyout deal, which was valued at about $6.25 billion.
The deal was accepted by the company’s board of directors unanimously, and it is anticipated to close in the first half of 2025.
Liverpool will control 49.9% of the business as part of the agreement, while the family will own 50.1%. A news statement states that common stockholders will get $24.25 in cash for each share of common stock they own.
“For over a century, Nordstrom has operated with a foundational principle of helping customers feel good and look their best,” Nordstrom CEO Erik Nordstrom said in a press release announcing the acquisition. “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.”
Nordstrom Is the Latest Retail Private Equity Deal
The retail giant is just the latest to engage in a private equity deal. Last week, Vera Wang announced that it, too, had been acquired in a private equity deal.
The well-known wedding dress company, which has been self-funded since its inception in 1990, agreed to sell to WHP Global, a private equity-backed brand management company.
Vera Wang, the owner of the brand, will become a shareholder in WHP and continue to serve as its chief creative officer as part of the deal. As with its previous agreements, WHP purchased Vera Wang’s intellectual property.
The 75-year-old Wang started her business at a single bridal shop in The Carlyle Hotel in Manhattan. Celebrities including Ariana Grande, Beyoncé, Hailey Bieber, Kim Kardashian, and Zendaya still frequently don her gowns for various occasions.
With the help of multiple licensing agreements, Vera Wang has developed into a complete lifestyle brand that now sells ready-to-wear, fine jewelry, home goods, shoes, fragrance, men’s tuxedos and suits, and more. The upscale brand generates over $700 million in sales each year.
