Notrstrom forms special committee as owners mull taking company private By Investing.com

Members of the Nordstrom (NYSE:) founding family are contemplating a move to privatize the company amid ongoing challenges in the department store sector, with competitors like Macy’s facing pressures to sell.

Specifically, the company’s CEO Erik Nordstrom, and President Pete Nordstrom, President, have expressed their interest in a potential buyout to Nordstrom’s board.

In reply, the department store chain has established a special committee composed of independent directors to review Nordstrom’s proposal and any others that may arise.

“The special committee retained Morgan Stanley & Co. LLC and Centerview Partners LLC as financial advisors and Sidley Austin LLP and Perkins Coie LLP as legal counsel,” Nordstrom said in a statement.

However, there are no guarantees that these discussions will lead to a formal transaction, it added.

Over the past five years, Nordstrom’s share value has declined by about 50%, bringing the company’s market valuation to approximately $3 billion.

The Nordstrom family, who control about 30% of the company’s shares, has explored privatization deals multiple times, including a notable attempt in 2017 when the family partnered with private equity firm Leonard Green & Partners to take Nordstrom private.

However, these negotiations were discontinued less than a year later after the board deemed their offer insufficient.

JWN shares rose 2% in after-hours trading.

SOURCE: Investing.com – Stock Market News   (go to source)
AUTHOR: Investing.com
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