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 in an industry being squeezed by discount chains and other competition.

Public companies are under a lot more scrutiny. But if it’s private, the Nordstroms may have more leeway in reviving a department store chain that, like others, has looked to revive lackluster sales for years.

Nordstrom shareholders will receive $24.25 in cash for each share of Nordstrom common stock, 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.

Rivals like Macy’s and Kohl’s have been pressured by major investors to make huge changes to return more profit to shareholders. Traditional department stores are facing competition from giants like Walmart and Target, as well as a host of fast-fashion brands and Amazon.com.

Sales at Nordstrom have essentially flatlined over the past decade or so.

The offer announced Monday tops the previous $23-a-share bid that the Nordstrom family and the Mexican retail group El Puerto de Liverpool made in September.

The board also plans to authorize a special dividend of up to 25 cents a share, based on Nordstrom’s cash on hand immediately prior to and contingent on the close of the transaction.

The deal is expected to close in the first half of 2025, at which time the company’s shares will no longer trade publicly.