Seven & i Attracts Over $5 Billion Bids from KKR and Bain
Deal News | Dec 26, 2024 | Zawya
Private equity firms KKR and Bain Capital have each presented initial bids exceeding $5 billion for the non-core assets of Japan's Seven & i Holdings, sources reveal. KKR offered approximately 800 billion yen, while rival Bain Capital proposed around 1.2 trillion yen, surpassing the expected enterprise value of 500 billion yen. The local buyout firm Japan Industrial Partners also submitted a bid of about 750 billion yen. These bids represent the first phase of a competitive acquisition process, as Seven & i intends to divest non-core businesses, including its supermarket operations, under the new York Holdings unit. Meanwhile, the founding family of Seven & i is contemplating a management buyout to counter a $47 billion offer from Canadian company Alimentation Couche-Tard. The three firms are expected to submit binding proposals following due diligence, with the prospective winning bid anticipated to be announced by February. In addition, Bain and KKR have been approached by Seven & i's founding family for potential mezzanine funding to support the management buyout.
Sectors
- Private Equity
- Retail
- Corporate Finance
Geography
- Japan – All key participants like Seven & i Holdings and Japan Industrial Partners are based in Japan, making it the central geography of the article.
Industry
- Private Equity – This industry is relevant as the article discusses the involvement of major private equity firms like KKR and Bain Capital in the bidding process for Seven & i's non-core assets.
- Retail – Seven & i Holdings operates in the retail sector, with assets including supermarkets and restaurants, making this industry pivotal to the transaction.
- Corporate Finance – The article highlights strategic financial activities including asset divestiture, a potential management buyout, and corporate bidding, aligning with corporate finance.
Financials
- $5.1 billion – The approximate bid amount KKR offered for Seven & i's non-core assets.
- 1.2 trillion yen – The bid amount proposed by Bain Capital for the York Holdings assets.
- 750 billion yen – The bid made by Japan Industrial Partners for the assets in question.
- 500 billion yen – The expected enterprise value of the assets up for sale.
- $47 billion – The takeover offer made by Alimentation Couche-Tard for Seven & i.
- 6.2 trillion yen – The market capitalisation of Seven & i as of December 24.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| KKR | Bidding Company | Company | A global private equity firm participating in the bid for Seven & i's non-core assets. |
| Bain Capital | Bidding Company | Company | An American private equity firm that has submitted a significant bid for Seven & i's divested assets. |
| Japan Industrial Partners | Bidding Company | Company | A local Japanese private equity firm involved in the asset bidding process for Seven & i. |
| Seven & i Holdings | Target Company | Company | A Japanese retail giant looking to divest non-core assets and considering a management buyout. |
| Alimentation Couche-Tard | Potential Acquirer | Company | A Canadian company that has made a $47 billion takeover offer for Seven & i. |