The Nordstrom family is teaming up with Mexican retail group El Puerto de Liverpool in an offer to take the department store private.
Erik Nordstrom sent a letter to the board of directors on Tuesday saying the family, which owns 33.4% of the outstanding stock, will pay investors $23 per share.
The big picture: The offer would be a 35 percent premium since the deal first emerged in March.
- El Puerto de Liverpool already owns 9.6% of Nordstrom stock and operates over 300 stores in Mexico, making it the third-largest credit card issuer in Mexico.
- The Nordstrom Rack division has shown strong growth, with sales increasing by 8.8% and comparable sales rising by 4.1% in the recent quarter.
Driving the news: Nordstrom reported mixed financial results with sales growth of 3.4% in the second quarter, while net income decreased by nearly 11% to $122 million.
- Sales at Nordstrom Rack jumped by 8.8% in the most recent quarter.
- The proposed transaction was partially influenced by the health of former Chairman Bruce Nordstrom, who passed away in May at 90 years old.
What we’re watching: The special committee of the board of directors will evaluate the offer, as the Nordstrom family and their partner have commitments for $250 million in new bank financing.
