Overview and Background
El Puerto de Liverpool, a prominent Mexican retail company, has recently become the owner of 49.9% of the American department store chain Nordstrom. This strategic investment aims to establish operational synergies between the two retail giants.
About El Puerto de Liverpool
El Puerto de Liverpool is a well-known Mexican retail company operating 320 stores under the brands Liverpool and Suburbia. The company also manages 128 specialty boutiques and 30 shopping centers. With over 7.9 million loyalty program members, El Puerto de Liverpool holds a significant position in the Mexican retail market.
About Nordstrom
Nordstrom, founded in 1901 as a shoe store in Seattle, Washington, has grown into a major American department store chain with over 350 locations. The company operates Nordstrom, Nordstrom Local, and Nordstrom Rack stores. In the fiscal year 2024, Nordstrom reported total revenues of $15 billion.
Investment Details
El Puerto de Liverpool invested $1.23 billion in Nordstrom, utilizing its own resources and financing. The acquisition involved a cash payment of $24.25 per share for Nordstrom’s shareholders, who will receive cash dividends of $0.25 per share and special and regular dividends amounting to $0.1462 per share.
Impact on Shareholders
As a result of the transaction’s closure, Nordstrom’s common shares will cease trading on the New York Stock Exchange before the market opening on May 21, 2025. From that date, Nordstrom will no longer be listed on the NYSE.
Leadership and Future Collaboration
Erik and Pete Nordstrom, members of the founding family, will lead Nordstrom as co-CEOs. This partnership aims to leverage the strengths of both companies, creating opportunities for operational synergies and growth.
Key Questions and Answers
- What is the main reason for this investment? El Puerto de Liverpool aims to establish operational synergies with Nordstrom, an iconic global retail brand.
- What percentage of Nordstrom does El Puerto de Liverpool now own? El Puerto de Liverpool owns 49.9% of Nordstrom.
- Who will lead Nordstrom after this investment? Erik and Pete Nordstrom, members of the founding family, will serve as co-CEOs.
- What was the total investment amount by El Puerto de Liverpool? The investment totaled $1.23 billion.
- How will Nordstrom shareholders be compensated for the acquisition? Shareholders will receive cash dividends of $0.25 per share and special and regular dividends amounting to $0.1462 per share.
