the family is offering $23 a share. The goal is to collectively own 50.1% of the company, according to a regulatory filing on Wednesday. Liverpool would hold the remaining shares., the proposed deal is valued at nearly $3.8 billion. It includes cash and equity contributions from the Nordstroms and Liverpool, along with $250 million in new bank financing to buy out existing shareholders.
Overall, while privatization could provide Nordstrom with more flexibility and focus, it will still need to navigate the broader challenges of the retail industry to succeed. Privatizing Nordstrom could have several impacts on its operations:: As a private company, Nordstrom would no longer be subject to the same level of scrutiny from Wall Street and public investors.
Erik and Peter Nordstrom, the company’s CEO and president, are the great-grandsons of founder John W. Nordstrom, who started the business as a shoe store in 1901. The brothers cited their father Bruce Nordstrom’s health as a reason for wanting to take the company private earlier this year. Bruce Nordstrom, the former chairman who led the company through significant growth, passed away in May at the age of 90.
Founded in 1991, the GSBA Scholarship & Education Fund, with the help of Carter Subaru, has invested almost $6 million in 552 scholars.