Japan’s Seven and i Holdings, a conglomerate that controls more than 80,000 7-Eleven stores around the globe, has agreed to acquire 7-Eleven Australia in a A$1.71 billion ($1.1 billion) deal, reported Reuters. The deal is expected to close in February 2024.
According to a company press release, the 7-Eleven Australia business will be operated as a wholly owned subsidiary of 7-Eleven International, headquartered in Melbourne. The current management team will remain the same under the new ownership.
The Australian convenience retailer began the process of selling the business earlier this year, noted Reuters. The company currently consists of 751 stores across the country and processes 250 million transactions each year.
Seven and i Holdings stated that the deal will allow the company to establish "itself as the clear industry leader in the Australian convenience store market, which has significant growth potential." The company announced that it believes there is room for further growth by actively opening new stores in Victoria, New South Wales, Queensland, Western Australia and other states.
Speaking on behalf of the shareholders of 7-Eleven Australia, former Chairman Russell Withers said, “The Withers and Barlow families have had a proud association with the 7-Eleven brand since we brought it to Australia in 1977. The company has made significant progress in recent years on several fronts and is performing well under a highly credentialed management team. Now is the right time for our families to pass the business to new owners to continue to build and develop this wonderful brand.”
He added, “We are confident that 7-Eleven International will be strong custodians of the business and support the future growth and success as the first choice in convenience retailing in Australia.”
CEO and managing director of 7-Eleven Australia Angus McKay said that the acquisition is “a vote of confidence in our people, our strategy and the future of 7-Eleven Australia. … Our customers will continue to come first, and we will remain focused on the transformation of our total merchandise and fuel offer, the evolution of our convenient food proposition, digital and format innovation, as well as the roll out of new stores.”
In other 7-Eleven news, a location in Japan is drawing crowds to its store due to its expansive beer selection. Read more in NACS Daily.