Nordstrom Family Makes $3.8 Billion Play To Take Company Private Again

Core Viewpoint - The Nordstrom family has proposed a $3.8 billion offer to take the department store chain private, aiming to regain control of the company [1][2]. Group 1: Acquisition Proposal - The Nordstrom family, along with El Puerto de Liverpool, has made an offer to acquire all outstanding shares of Nordstrom, excluding those held by the family and Liverpool, at a price of $23.00 per share in cash [3]. - The financing for the acquisition will involve rollover equity and cash commitments from the Nordstrom family and Liverpool, along with $250 million in new bank financing, while existing company debt will remain [3][4]. Group 2: Financial Performance - For the second quarter ending August 3, Nordstrom reported net earnings of $122 million and earnings before interest and taxes of $190 million [5]. - Net sales increased by 3.4% compared to the same period in fiscal 2023, with total comparable sales rising by 1.9%. Notably, Nordstrom Rack saw net sales increase by 8.8% and comparable sales by 4.1% [6]. - The company's stock value has risen by 25% year-to-date, although the acquisition offer does not provide a premium over the current share price, which may limit shareholder interest [8]. Group 3: Strategic Focus - Nordstrom is focusing on enhancing its supply chain efficiency, achieving over 5% faster delivery times for online orders, which has led to improved conversion rates and reduced returns [7]. - The company has been expanding its off-price banner, Nordstrom Rack, opening 11 new locations this fiscal year, with plans to open at least 22 by year-end [7].