Nordstrom’s (JWN) founding family has made a renewed attempt to take the department store chain private for $23 per share in cash, the luxury retailer announced on Wednesday. Erik and Pete Nordstrom, along with other members of the Nordstrom family, have teamed up with Mexico-based retailer El Puerto de Liverpool (ELPQF) to bid for the company.
Details of the Founding Family’s Bid
The Nordstrom family and the Mexico-based retailer’s joint bid would value Nordstrom at around $3.76 billion. The bidders jointly submitted a non-binding letter to form a new entity to acquire the company. In response to the family’s interest earlier this year, Nordstrom formed a special committee of independent directors to assess the potential deal.
As of September 4, the Nordstrom family holds around 54.6 million shares, representing a 33.4% stake in the company, while Liverpool owns nearly 10%, with 15.8 million shares. The proposed acquisition would be financed through a mix of rollover equity and cash contributions from the Nordstrom family and Liverpool, along with $250 million in new bank financing.
In a related development earlier this year, Sycamore Partners had also expressed interest in taking Nordstrom private.
Is JWN Stock a Good Buy?
Analysts remain sidelined about JWN stock, with a Hold consensus rating based on two Buys, six Holds, and four Sells. Over the past year, JWN has surged by more than 50%, and the average JWN price target of $21.33 implies a downside potential of 6.4% from current levels.
