U.S. Markets open in 4 hrs 35 mins
  • S&P Futures

    4,400.75
    +6.25 (+0.14%)
     
  • Dow Futures

    34,939.00
    -14.00 (-0.04%)
     
  • Nasdaq Futures

    14,983.75
    +36.00 (+0.24%)
     
  • Russell 2000 Futures

    2,201.50
    +14.80 (+0.68%)
     
  • Crude Oil

    72.08
    +0.43 (+0.60%)
     
  • Gold

    1,799.50
    -0.30 (-0.02%)
     
  • Silver

    24.81
    +0.16 (+0.65%)
     
  • EUR/USD

    1.1826
    0.0000 (-0.0000%)
     
  • 10-Yr Bond

    1.2340
    0.0000 (0.00%)
     
  • Vix

    18.69
    +1.11 (+6.31%)
     
  • GBP/USD

    1.3882
    +0.0004 (+0.0264%)
     
  • USD/JPY

    109.9100
    +0.1430 (+0.1303%)
     
  • BTC-USD

    39,514.14
    +2,206.01 (+5.91%)
     
  • CMC Crypto 200

    928.13
    +51.90 (+5.92%)
     
  • FTSE 100

    7,015.70
    +19.62 (+0.28%)
     
  • Nikkei 225

    27,581.66
    -388.56 (-1.39%)
     

Nordstrom (JWN) Stock Soars on Renewed Buyout Talk

Shares of Nordstrom (JWN) climbed on Wednesday after reports surfaced that the department store chain would once again consider taking on a private equity client in order to fund a buyout.

Shares of Nordstrom JWN climbed on Wednesday after reports surfaced that the department store chain would once again consider taking on a private equity client in order to fund a buyout.

CNBC first reported that Nordstrom family members are close to picking an investment firm to help the family facilitate a buyout of the publicly traded company, of which they own roughly 31%. In the potential deal, Leonard Green & Partners would supply roughly $1 billion to the Nordstrom family to help fund a deal to take the company private.

Nordstrom’s shares popped 6.1% premarket and have since surged over 6.02% in morning trading Wednesday. Still, the historic U.S. department store sits almost $15 below its 52-week high of $62.83 per share.

The company first announced it would consider taking the company private in June. Nordstrom’s statement noted that the family was looking into the possibility of acquiring 100% of JWN’s outstanding shares of common stock.

Talk surrounding Nordstrom’s possible private buyout continued in early August, when it was reported that the family was in talks with KKR KKR, Apollo APO, and Leonard Green.  Renewed buyout speculation seems to have piqued investors’ interests on Wednesday, but the privet equity deal has not been finalized.

The department store giant with a market cap of roughly $7.9 billion is also reportedly in talks with banks to raise around $8 billion in debt in order to completely finance the deal to go private.

Nordstrom has seen its stock price fluctuate since the beginning of the year as it tries to navigate the changing retail waters. Now, it seems that the Nordstrom family thinks that it would be able to make changes and investments that help the chain adapt without having to worry about negative, short-term shareholder reactions.

The renewed energy to go private comes only two days after the company announced it will debut a new concept store in California in early October. Branded “Nordstrom Local,” the company won’t even sell clothes at the new store, opting instead to focus on personal styling and consultations (also read: Nordstrom's New Inventory-Free Concept is Risky--But Just May Work).

Nordstrom wants to experiment and evolve in the dynamic retail landscape, where these new age retail ideas have started to catch on. Yet, shares of Nordstrom tanked around 5% on Monday after the company made the Nordstrom Local announcement.

Other Department Stores

Shares of Nordstrom’s biggest retail peers, including Macy’s M and Dillard’s DDS, experienced marginal gains on Wednesday. The SPDR S&P Retail ETF XRT saw its stock price climb over 1%, while shares of the Direxion Daily Retail Bull 2x Shares ETF RETL popped 3.05%.

More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
KKR & Co. L.P. (KKR) : Free Stock Analysis Report
 
Apollo Global Management, LLC (APO) : Free Stock Analysis Report
 
SPDR-SP RET ETF (XRT): ETF Research Reports
 
DIR-D RTL BL 3X (RETL): ETF Research Reports
 
Nordstrom, Inc. (JWN) : Free Stock Analysis Report
 
Macy's Inc (M) : Free Stock Analysis Report
 
Dillard's, Inc. (DDS) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research