Japan’s Seven & i Holdings Co., the parent entity of the globally recognized 7-Eleven convenience stores, has announced the sale of its supermarket holdings to Bain Capital for approximately $5.4 billion.
On Wednesday, the company appointed Stephen Dacus, who was serving as the chairman of its board, to the position of President and CEO.
In a strategic move, Seven & i also revealed its intentions to list its North American 7-Eleven operations, known as SEI, on the U.S. stock market. This initial public offering is anticipated to take place by the end of 2026. Proceeds from both the asset sale and the IPO will be directed back to shareholders through share repurchases valued at 2 trillion yen, or roughly $5.4 billion.
Following the announcement, Seven & i’s share value saw a significant increase, climbing by 6.1% during trading in Tokyo.
This decision comes after Seven & i declined an acquisition proposal from Alimentation Couche-Tard, a Canadian retailer. According to Dacus, the offer failed to capture the true potential of the 7-Eleven enterprise and did not adequately consider regulatory issues from the U.S. authorities.
The 7-Eleven brand operates an extensive network of 86,000 stores across the United States, Japan, and other parts of Asia.
As of last year, the company initiated a comprehensive restructuring strategy aimed at bolstering its U.S. ventures and enhancing efficiency, which included shutting down several Ito-Yokado supermarkets within Japan.
The ubiquitous 7-Eleven stores continue to thrive in Japan, often filling the void left by traditional neighborhood shops. These convenience stores play a pivotal role in Japan’s retail landscape.
As part of its broader strategic adjustments, Seven & i had previously divested its Sogo & Seibu department store chain to Fortress Investment Group, a fund based in the U.S., for $1.5 billion. The company has also indicated plans to decrease its stake in Seven Bank.
