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Top of the Morning
The founding family that controls high-end retailer Nordstrom (NYSE: JWN) reportedly has picked private equity firm Leonard Green & Partners to take it private, with a formal bid expected within the next few weeks. Shares in the Seattle-based company climbed more than 6% in aftermarket trading, giving it a market cap of nearly $7.8 billion (it was around $7.4b when the Nordstrom said in early June that it was open to a sale process).
- Why it's the BFD: Private equity keeps taking stabs at big physical retailers, despite data suggesting that they're catching a falling knife. Just today, for example, Sycamore Partners closed its $6.9 billion Staples purchase.
- Key number: 31, which is the percentage of outstanding stock held by the controlling family. This also corresponds to the typical equity slug in large private equity deals, and that's before Leonard Green's $1 billion participation. In other words, post-transaction Nordstrom might not face quite the same leverage load that has encumbered PE-backed rivals like Neiman Marcus.
Venture Capital Deals
Private Equity Deals
⛽ Howard Midstream Partners, a San Antonio, Texas-based limited partnership that owns and operates midstream energy infrastructure assets in Texas and Pennsylvania, has filed for a $200 million IPO. It plans to trade on the NYSE under ticker symbol HMP, with Barclays listed as left lead underwriter. www.howardenergypartners.com
• Erik Falk has joined Star Mountain Capital as a senior advisor. He led private credit at KKR until earlier this year, and currently is with Magnetar. www.starmountaincapital.com
• Frits van Paasschen, former CEO of Starwood Hotels and Resorts, has joined TPG Capital as a senior advisor. http://reut.rs/2gZmGCC
• Elizabeth de Saint-Aignan has joined Jump Capital's growth equity group as a partner. She previously was a principal with TA Associates. www.jumpcap.com
• David Snider is joining Bain Capital Ventures as a New York-based executive-in-residence. He is a onetime BCV associate who currently is chief financial officer at real estate tech company Compass.
Deals for EU companies by a non-EU acquirer are down for their third consecutive year, according to Thomson Reuters. Inside the year-to-date numbers:
- UK companies remain the most attractive targets for non-EU buyers, representing 40% of inbound volume.
- The U.S. leads the buyside chart at 45%, followed by China with 15%.
- Tech companies account for 17.6% of deal volume, followed in popularity by real estate (17%) and healthcare (15.6%).