Nordstrom Family Offers $3.8B in Go-Private Bid

Nordstrom Inc.’s Erik Nordstrom and Pete Nordstrom have teamed with Mexico’s El Puerto de Liverpool to offer $3.8 billion for the Seattle retailer. 

Erik, the company’s CEO, and Pete, Nordstrom’s president and chief brand officer, made the offer with a consortium that includes additional members of the founding family along with Mexico-based El Puerto de Liverpool. 

The offer is for $23 per share, according to an announcement made by the company on Wednesday. 

The group is stitching together rollover equity, cash from family members and El Puerto de Liverpool and $250 million in financing. 

El Puerto de Liverpool operates the Liverpool and Suburbia department store chains throughout Mexico, in addition to owning nearly 30 malls. The company currently owns a 9.6 percent stake in Nordstrom, according to a filing with the Securities & Exchange Commission. 

Nordstrom Inc. said its special committee formed to evaluate the offer will review the proposal with advisors. 

“There can be no assurance that the company will pursue this transaction or other strategic outcome, or that a proposed transaction will be approved or consummated,” Nordstrom Inc. said in a statement, adding it would not offer further information. 

The Nordstrom Consortium

Erik and Pete are the sons of Bruce A. Nordstrom, whose grandfather John W. Nordstrom founded the retailer with Carl F. Wallin at the turn of the century. The business, originally called Wallin & Nordstrom, counted 365 stores in its fleet as of the quarter ended May 4.

That count is a combination of the company’s Nordstrom banner, largest chain Nordstrom Rack, Nordstrom Local and Last Chance clearance concept. 

Erik and Pete each currently hold a 7.3 percent stake in the business, according to an SEC filing. 

Other members of the Nordstrom family with sizable stakes in the business, include: 

• Anne Gittinger, granddaughter of John Nordstrom, holds a 9.4 percent stake

• Trustee of the Everett W. Nordstrom Trust, holds 7.6 percent

• James F. Nordstrom Jr., Nordstrom chief merchandising officer, holds 0.7 percent

• Estate of Bruce A. Nordstrom, has a 6.3 percent

• Margaret Jean O’Roark Nordstrom, spouse of Bruce A. Nordstrom, holds 0.2 percent

• Linda Nordstrom, cousin of Bruce A. Nordstrom, holds 3.1 percent

• Susan E. Dunn, niece of Bruce A. Nordstrom, holds 0.6 percent

• Alexandra F. Nordstrom, daughter of Blake and a Nordstrom buyer, holds 0.1 percent

• Andrew L. Nordstrom, son of Blake Nordstrom and a private chef, holds 0.1 percent

• Leigh E. Nordstrom, daughter of Erik and the Eye Editor at fashion trade Women’s Wear Daily, holds 0.1 percent