What: Nordstrom's founding family, along with El Puerto de Liverpool, has proposed a USD 3.8 billion offer to take the company private by acquiring all outstanding shares not already owned by them for USD 23 per share in cash.

Why it is important:  The involvement of El Puerto de Liverpool, a major Mexican retailer, could indicate a strategic partnership that may influence Nordstrom's operations and market reach.

Nordstrom's founding family, including CEO Erik Nordstrom and President Pete Nordstrom, has submitted a proposal to acquire the department store chain privately for USD 23 per share, totaling USD 3.8 billion. This offer is made in collaboration with Mexican retailer El Puerto de Liverpool and is aimed at purchasing shares not already owned by the family and Liverpool. The financing for this transaction would involve a combination of rollover equity, cash commitments, and USD 250 million in new bank financing, while existing company debt would remain. A special committee of independent directors, formed in response to the family's interest, is reviewing the proposal with financial and legal advisors. The proposal's timing aligns with Nordstrom's recent sales gains in its off-price Rack division, despite ongoing challenges in its department store segment. No immediate action is required from shareholders, and there is no assurance that the transaction will proceed.

Nordstrom family group offers USD 3.8B to go private