SEATTLE, Feb 17, 2011 (BUSINESS WIRE) --
Nordstrom, Inc. (NYSE:JWN) announced today it has entered into an
agreement to acquire HauteLook, Inc., a leader in the online private
sale marketplace. The Company said the acquisition will enable Nordstrom
to participate in the fast-growing private sale marketplace and provide
a platform to increase innovation and speed in the way it serves
customers in all channels.
The acquisition will build on Nordstrom's success in multi-channel
retailing. Recently, these efforts have included implementing an
enterprise-wide inventory management system, increasing its Direct
business capabilities and integrating its online and store presence to
provide customers with a seamless experience.
"We are excited to partner with HauteLook as we believe this acquisition
further enhances our focus on serving customers online in new and
compelling ways," said Blake Nordstrom, president, Nordstrom, Inc.
"While our focus on providing a superior in-store shopping experience is
our roots, continuing to find ways to use technology to serve customers
the way they want to be served is critical. This partnership gives
Nordstrom and HauteLook shared growth opportunities as online shopping
evolves." Nordstrom added, "CEO Adam Bernhard and his team have built a
fantastic business since launching HauteLook just over three years ago
and we want them to continue to do what they do well. We think their
highly talented team and culture of innovation will be a terrific
complement to our business."
HauteLook CEO Adam Bernhard said, "By joining forces with Nordstrom, we
are giving customers a fuller range of options for the way they shop
today." Bernhard continued, "Our established membership base of well
over four million shoppers is closely aligned with the Nordstrom
customer. We feel fortunate to partner with a company that shares our
commitment to providing customers with great brands and an exciting
shopping experience."
Nordstrom will acquire HauteLook for $180 million in Nordstrom stock
with a portion subject to ongoing vesting requirements. In addition, the
transaction includes a three-year earn-out of up to $90 million in
Nordstrom stock subject to company performance and vesting requirements
for the existing management team. The overall transaction structure
provides significant incentive and retention mechanisms for HauteLook
senior management. HauteLook will operate as an independent,
wholly-owned subsidiary, be managed by its current leadership and the
HauteLook brand and website will remain separate from Nordstrom.
The transaction is expected to be dilutive to Nordstrom in 2011 due to
non-cash expenses related to the acquisition. The transaction is
expected to close in the first quarter of 2011 and is subject to
customary closing conditions, including customary regulatory and
HauteLook shareholder approvals.
Guggenheim Securities, LLC is acting as exclusive financial advisor to
Nordstrom and Gibson, Dunn & Crutcher LLP and Lane Powell PC are acting
as its counsel. JP Morgan Securities Inc. is acting as exclusive
financial advisor to HauteLook and Gunderson Dettmer is acting as its
counsel.
HauteLook is a leader in the online private sale channel, offering
limited time sale events on the world's top fashion and lifestyle
brands. Every day, HauteLook offers discounts of 50 to 75 percent off on
great brands for women, men, kids, home, beauty, travel and local
services. HauteLook launched in 2007 and is headquartered in Los
Angeles. Membership is free and everyone is welcome. Visit www.HauteLook.com
to learn more.
Nordstrom, Inc. is one of the nation's leading fashion specialty
retailers, with 204 stores located in 28 states. Founded in 1901 as a
shoe store in Seattle, today Nordstrom operates 115 full-line stores, 86
Nordstrom Racks, two Jeffrey boutiques and one clearance store.
Nordstrom also serves customers through its online presence at www.nordstrom.com
and through its catalogs. Nordstrom, Inc.'s common stock is publicly
traded on the NYSE under the symbol JWN.
Certain statements in this news release may contain or may suggest
"forward-looking" information (as defined in the Private Securities
Litigation Reform Act of 1995).Such statements are based upon
the current beliefs and expectations of the company's management.Actual
future results and events in future periods may differ materially from
those expressed or implied by these forward-looking statements because
of a number of risks, uncertainties and other factors.Risks and
uncertainties include the possibility that the transaction may not be
timely completed, if at all; that, prior to the completion of the
transaction, HauteLook's business may experience disruptions due to
transaction-related uncertainty or other factors making it more
difficult to maintain relationships with employees, customers or
vendors; benefits to Nordstrom and its customers from the acquisition
may not be realized to the extent anticipated;that the parties
are unable to successfully implement the plans, strategies and
objectives of management for post-acquisition operations; and other
risks that are described in the Company's Securities and Exchange
Commission filings.Nordstrom undertakes no obligation to update
or revise any forward-looking statements to reflect subsequent events,
new information or future circumstances.
SOURCE: Nordstrom, Inc
Investor Contact:
Nordstrom
Sandy Fabre, 206-233-6563
or
Media Contact:
Nordstrom
Colin Johnson, 206-373-3036
