Background on Nordstrom and Liverpool
Nordstrom is a well-known American department store chain, operating 92 physical stores as of February 2024. The company also has a discount and off-price division, Nordstrom Rack, which manages 277 stores across the United States. Over the past year, Nordstrom has reported a total revenue growth of 2.2%, adjusted to 3.6% when accounting for calendar effects.
Liverpool, a Mexican department store chain, has been a significant player in the Mexican retail market. This merger marks Liverpool’s entry into the U.S. market, valued at $6.25 billion.
Merger Details and Approval
On May 16, Nordstrom’s Special Shareholders’ Meeting approved the proposed merger with Liverpool. The agreement, signed on December 22, 2024, required two conditions for approval: the favorable vote of at least two-thirds of common shareholders and a simple majority among independent shareholders, excluding certain Nordstrom buyers and directors.
Both conditions were met, confirming Liverpool’s acquisition of 100% of Nordstrom’s shares. Post-transaction, Nordstrom will cease trading on the New York Stock Exchange and become a privately-held company owned by Norse Holdings.
- Question: Liverpool will hold 49.9% of the shares, while the founding Nordstrom family will own 50.1%.
- Question: Shareholders will receive $24.25 per share in cash.
- Question: Yes, shareholders may receive an additional special dividend of up to $0.25 per share.
Nordstrom’s Recent Growth and Expansion
In 2024, Nordstrom focused on expanding its physical and digital presence while strengthening its omnichannel strategy. The company opened 23 new Nordstrom Rack stores across the U.S., aiming to open a similar number in 2025.
As Nordstrom prepares to become a privately-held company once again, its recent growth and strategic moves position it well for continued success in the competitive retail landscape.
