Nordstrom Stock In Focus After $6.25B Take-Private Deal: Retail Upbeat
By Stocktwits Inc | First Published Dec 24, 2024, 12:21 AM ISTThe company’s common shareholders are set to receive $24.25 in cash for each share of its common stock.
Shares of luxury retail store Nordstrom ($JWN) were down 1.71% on Monday after it announced it was being taken private by members of the Nordstrom family in a transaction valued at $6.25 billion. Retail sentiment stayed bullish.
Following the announcement of the deal, which is expected to close in the first half of 2025, the Nordstrom Family will have a majority ownership stake in the company.
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Nordstrom struck an agreement with Erik, Pete, Jamie Nordstrom, other members of the Nordstrom family, and El Puerto de Liverpool, S.A.B. de C.V., the company said.
The company’s shareholders are set to receive $24.25 in cash for each share of its common stock. The transaction represents a premium of approximately 42% on the company’s stock since March 18, 2024.
The company’s board also intends to pay a special dividend of up to $0.25 per share in cash upon closing.
Retail sentiment on the stock was ‘bullish’ compared to ‘neutral’ a month ago.
The Nordstrom board of directors unanimously approved the deal upon the recommendation of a special committee of independent and disinterested directors that led its review and negotiation.
"The special committee of the Nordstrom Board of Directors reviewed this proposal against the company's standalone prospects for growth," Eric Sprunk, chairman of the special committee, said.
“Following a rigorous and independent evaluation and consultation with outside financial and legal advisors, the special committee unanimously concluded that this transaction offers greater value for all public shareholders at a significant premium to the unaffected share price," he added
In its most recent quarter, Nordstrom posted adjusted diluted earnings per share (EPS) of $0.33, above consensus estimates of $0.22, according to Stocktwits data.
The company’s total comparable sales increased 4% year-on-year. Its women's apparel and active segments saw double-digit growth. Meanwhile, its shoes, men's apparel and kids saw mid to high single-digit growth compared to the previous year, according to a company statement.
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