Nordstrom to go private in all-cash $6.25 billion deal. Is it a good move?
Published On Dec 23, 2024, 12:29 PM
Nordstrom is going private in a $6.25 billion deal led by the founding Nordstrom family and retail investor El Puerto de Liverpool. Each shareholder will receive $24.25 per share in cash, offering a nearly 36% premium over the stock's year-to-date price. Analysts have mixed feelings, with some believing the transaction will be approved easily, while expressing disappointment over the lower-than-expected offer price. Nordstrom's recent performance shows growth in sales, especially in e-commerce, despite ongoing challenges in the retail sector.
Stock Forecasts
JWN
Positive
Nordstrom's decision to go private is seen as a method to escape public scrutiny and to enable long-term strategic planning. This could potentially allow the company to improve its operations and customer engagement without the pressure of quarterly earnings reports. The involvement of El Puerto may provide additional resources and expertise in improving Nordstrom's business model.
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