Nordstrom buyout looks like least bad fit

Nordstrom

06/09/2024 15:08

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are her own.)
    By Sharon Lam
       TORONTO, Sept 6 (Reuters Breakingviews) - The US
department store chain’s founding family and a Mexican retailer
have offered to take it private in a $3.8 bln deal. The
share price has risen since a deal was first mooted,
but Nordstrom’s prospects haven’t. Its directors ought not to
let this one get away.
       
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    CONTEXT NEWS
    A special committee of directors at U.S. department store
Nordstrom said on Sept. 4 that it received a proposal from the
Nordstrom family and Mexican retail group El Puerto de Liverpool
to acquire the outstanding shares of the company for $23.00 per
share in cash. The deal values the company at nearly $3.8
billion.
    The merger would be financed through a combination of
rollover equity and cash commitments by members of the Nordstrom
family and Liverpool and $250 million in new bank financing,
while Nordstrom's existing indebtedness would remain
outstanding.

 (Editing by John Foley and Pranav Kiran)
 ((For previous columns by the author, Reuters customers can
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sharon.lam@thomsonreuters.com))