Nordstrom: Going Private Premium to Current Price is Slim, but Promised Special Dividend Payout Will Sweeten the Deal

Nordstrom, a luxury department store chain headquartered in the United States, has finalized a definitive agreement for a private acquisition spearheaded by members of the Nordstrom family in collaboration with the Mexican retailer El Puerto de Liverpool. This transaction is valued at approximately $6.25 billion.

As part of this all-cash agreement, common shareholders of Nordstrom will receive $24.25 for each share they own, compared to today’s, December 24’s $24.20 each share. However, to sweeten up the “so-so” deal, the company hinted at its ongoing plans to pay out a special dividend of up to $0.25 per share, contingent on the successful completion of the deal. The acquisition is anticipated to close in the first half of 2025, subject to obtaining regulatory approvals and receiving consent from two-thirds of the common shareholders. We rate JWN at current levels a “Speculative Buy”.