Seven & i Holdings Co. has shortlisted private equity giants Bain Capital and KKR & Co., along with Japan Industrial Partners, for the sale of its York Holdings unit, Nikkei reported. The deal could be valued at about 600 billion yen ($3.9 billion), highlighting the company’s push to streamline operations.
The Japanese retail conglomerate, which owns the global 7-Eleven convenience store chain, is divesting its non-core assets including general merchandising chain Ito-Yokado and supermarket operator York-Benimaru. The sale has drawn interest from at least seven bidders, including trading house Sumitomo Corp. and Fortress Investment Group.
The selected buyers will begin due diligence in early 2025, with Seven & i evaluating proposals based on employment retention plans. The company may consider splitting the sale of York’s subsidiaries, which span 31 companies including Seven & i Food Systems, the operator of Denny’s restaurants in Japan.
Industry experts point to Ito-Yokado’s valuable real estate portfolio in prime urban locations as a key attraction for buyers. Sumitomo, which operates the Summit supermarket chain, might partner with investment funds after missing the cut in the first round.
Seven & i plans to convert York into an equity-method affiliate in the next fiscal year, while the founding Ito family is considering maintaining a stake in the business.
