Global investment company KKR has signed a definitive agreement to divest its ownership stakes in supermarket chain Seiyu to Japanese distribution and retail operator, Trial.
The transaction is valued at 380bn yen ($2.546bn) and involves the acquisition of 99,122,400 shares acquired (100% ownership).
This development follows a Nikkei report in January 2025, suggesting KKR's intention to sell its controlling interest in Seiyu.
KKR initially purchased a 65% stake in Seiyu from Walmart in 2021, then subsequently increased its ownership by acquiring an additional 20% from Rakuten in 2023, culminating in an 85% stake.
Walmart will concurrently divest its remaining 15% interest to Trial.
Since its inception in 1963, Seiyu has grown to operate 240 stores throughout Japan.
The chain is known for fresh food, general merchandise and clothing, offered through various store formats, and its Seiyu Netsuper delivery service.
Seiyu CEO Tsuneo Okubo stated: “We would like to thank our longstanding shareholders, including KKR and Walmart, for their support, which has enabled us to create substantial value for our customers and business.
“Over the past few years, we have levelled up our merchandising strategies and in-store operational capabilities while re-investing in our stores, employees, and IT capabilities as part of our transformation. We now look forward to building on this success with the support of our new shareholder Trial in Seiyu’s next chapter."
KKR and Walmart have been working together to foster Seiyu's growth by enhancing operational efficiency, product quality and variety, profitability and worker productivity through technological advancements.
Since 2021, Seiyu has seen improvements in product quality and selection, standardisation of operational processes, implementation of technological solutions such as self-checkout and automatic restocking systems and acceleration of digital transformation efforts for an improved customer experience.
The retailer is also being transformed into a supermarket-focused business model from a general merchandise store.
KKR Asia Pacific deputy executive chairman and KKR Japan CEO Hiro Hirano stated: “We are incredibly proud of what we have achieved with Seiyu and our strategic partners Walmart and Rakuten over the course of our ownership, and how this has delivered tremendously for Seiyu’s customers and our investors.
“Seiyu serves as an outstanding example of how global investors with deep local knowledge, global connectivity and know-how can help iconic Japanese brands and local champions unlock their full potential.”
The deal is pending regulatory approvals and customary closing conditions and will close in the second quarter of 2025.
