Nordstrom to go private in $6.25 billion deal with Nordstrom family and a Mexican retail group

Century-old department store Nordstrom has agreed to be acquired and taken private by Nordstrom family members and a Mexican retail group in a $6.25 billion deal that comes as department stores are facing pressure from discount chains and other competition.

Nordstrom shareholders will receive $24.25 in cash for each share of Nordstrom common stock, or about $4 billion in all, representing a 42% premium on the company's stock as of March 18, when reports of a potential transaction was reported by the media. The Nordstroms will also pick up more than $2 billion in debt.

As a private business, the Nordstroms may have more leeway in reviving a department store chain that, like others, has looked to revive lackluster sales for years. Other publicly traded retailers, including Macy's and Kohl's, have faced pressure from major investors in order to provide bigger returns to investors, while also attempting to fend off competition from lower-cost rivals such as Walmart and Amazon.com.