Private equity giants KKR and Bain Capital have each made first-round bids exceeding $5 billion for the non-core assets of Japan’s Seven & i Holdings, according to sources familiar with the matter.
KKR offered approximately 800 billion yen ($5.1 billion) for York Holdings, a spin-off entity of the Japanese retailer, while Bain Capital submitted a bid around 1.2 trillion yen ($8.2 billion). A local firm, Japan Industrial Partners, bid approximately 750 billion yen ($4.9 billion).
The bids surpassed the 500 billion yen enterprise value originally anticipated by Seven & i, which owns the 7-Eleven convenience store chain. All three firms successfully advanced to the next stage of bidding.
Seven & i plans to consolidate its supermarket operations and other non-core businesses, such as baby goods store Akachan Honpo and Denny’s Japan restaurants, into the York Holdings unit. Meanwhile, the retailer’s founding family is pursuing a management buyout to fend off a $47 billion takeover bid from Canada’s Alimentation Couche-Tard.
The three firms will now conduct due diligence and submit legally binding offers. Seven & i aims to finalize a deal by spring 2025. The privatisation, if realized, would be Japan’s largest-ever buyout, with Seven & i currently valued at 6.2 trillion yen ($42.4 billion).