7-Eleven Australia acquired for $1.7 billion

7-Eleven Australia acquired for $1.7 billion

Convenience store giant 7-Eleven Australia is set to be sold for $1.71 billion in all-cash deal to 7-Eleven International (7IN), which is a joint venture between 7-Eleven Japan and the US business.

7-Eleven Australia is owned by the Withers and Barlow families, which signed an area licence agreement in 1976 to bring the brand to Australia. Since then, the business has grown to 750 stores across Victoria, NSW, ACT, Queensland and WA, processing 250 million transactions each year and employing 9,000-plus staff.

Following the buyout, 7-Eleven Australia will operate as a wholly owned subsidiary of 7IN, headquartered in Melbourne. The existing management team will continue to lead the business under new ownership.

“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,” says co-founder Russell Withers of the Withers family office, who resigned as chairman of the chain in 2015.

“We are confident that 7IN will be strong custodians of the business and support the future growth and success of 7-Eleven as the first choice in convenience retailing in Australia.”

7-Eleven Australia CEO and managing director Angus McKay adds the business has strong momentum and an exciting outlook for growth.

"The acquisition by 7-Eleven International is a vote of confidence in our people, our strategy, and the future of 7-Eleven Australia,” McKay says.

“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 rollout of new stores." 

7-Eleven International is a joint venture between 7-Eleven Inc. and 7-Eleven Japan, which are owned by Seven & i Holdings. The parent company is headquartered in Tokyo, and is listed on the Tokyo stock exchange (TYO) with a market capitalisation of ¥4.87 trillion (AUD $49.7 billion).

The Seven & i Group has a network of stores in 20 countries and regions, with a focus on convenience stores, as well as superstores, specialty stores, and financial services. 

Following the acquisition, 7-Eleven International plans to further accelerate its market position in Australia.

"The acquisition of 7-Eleven Australia demonstrates our commitment to growing 7-Eleven's operations globally," said 7-Eleven International co-CEO's Shin Abe and Ken Wakabayashi. 

"We are looking forward to continuing to enhance the 7-Eleven brand in Australia, which enjoys a long-standing presence and unrivaled brand recognition with customers."

The transaction is subject to regulatory approvals, with the deal expected to be completed in the second quarter of 2024.

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