Key Points
- KKR and Bain Capital submitted first-round bids exceeding $5 billion for Seven & i’s non-core assets.
- Bain’s bid of 1.2 trillion yen topped KKR’s 800 billion yen offer.
- Seven & i’s founding family is pursuing a management buyout to counter a $47 billion bid by Alimentation Couche-Tard.
- The final bid is expected by February, and the decision will be finalized in spring. The privatization of Seven & i could be Japan’s largest deal.
Private equity firms KKR and Bain Capital have each placed first-round bids exceeding $5 billion for the non-core assets of Japan’s Seven & i Holdings. Sources revealed that KKR proposed a bid of approximately 800 billion yen ($5.1 billion) for York Holdings, the unit that will include several of Seven & i’s supermarket operations.
Bain Capital’s bid surpassed this, reaching around 1.2 trillion yen ($7.6 billion), while local firm Japan Industrial Partners offered approximately 750 billion yen ($4.8 billion). All three firms advanced past the first round, with bids surpassing the 500 billion yen enterprise value initially anticipated by Seven & i.
Seven & i, the parent company of 7-Eleven, is divesting non-core businesses, including its supermarket and superstore operations, baby goods retailer Akachan Honpo, and the Japanese arm of Denny’s restaurants. While the company’s spokesperson declined to comment on the bidding process, the bids underscore the strong interest in acquiring these assets.
Concurrently, Seven & i’s founding family discusses taking the company private through a management buyout. This move aims to counter a $47 billion takeover bid from Canadian convenience store operator Alimentation Couche-Tard. The family has also approached Bain Capital and KKR for mezzanine financing to support the buyout.
The three shortlisted firms will now conduct due diligence before submitting legally binding proposals. However, sources noted that bids could be adjusted during this phase. Should the firms fail to reach an agreement with Seven & i, previously unsuccessful bidders might re-enter negotiations. A final decision on the winning bid is expected by February, and completion is anticipated in the spring. The potential privatization of Seven & i would mark the largest deal in Japanese corporate history.
