7-Eleven International LLC Inks $1.1B Acquisition Deal

IRVING, Texas — 7-Eleven International LLC (7IN) agreed to acquire 7-Eleven Australia, the largest independent convenience store chain in Australia.

As part of the agreement, 7IN will acquire 100 percent of the shares of 7-Eleven Australia for A$1.71 billion ($1.1 billion) in cash. 7-Eleven Australia operates 751 local stores and is a long-standing licensee of 7-Eleven.

7IN is a joint venture between 7-Eleven Inc. and Seven-Eleven Japan Co. Ltd., which are owned by the holding company, Seven & i Holdings Co. Ltd. It formed in February 2022. 

"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."

7-Eleven Australia has been led by the Withers and Barlow families since 1977. The company processes 250 million transactions each year and employs more than 9,000 people across the corporate and franchise network.

"The acquisition by 7-Eleven International is a vote of confidence in our people, our strategy and the future of 7-Eleven Australia," said 7-Eleven Australia CEO and Managing Director Angus McKay. "The business has strong momentum and an exciting outlook for growth. 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." 

[Read more: Seven & i Holdings' Independent Directors to Review All Options]

According to the companies involved, the transaction follows several strategic and financial rationales:

• Growth strategy: 7IN acquisition furthers Tokyo-based Seven & i Holdings commitment to growing globally. Seven & i Holdings will leverage 7-Eleven Australia's nearly 50-year business practices to further enhance the 7-Eleven brand.
• The leading convenience chain in Australia: 7-Eleven Australia is the No. 1 independent convenience store operator with 751 stores across major populated areas and has the leading market share. With this acquisition, 7IN's investment will further accelerate its market-leading position in Australia, which has attractive growth opportunities driven by a young and diverse population.
• Significant opportunity with focus on food: 7IN plans to expand 7-Eleven Australia's product assortment and introduce new high-quality food products to address the country's highly diverse food preferences through strong value chain initiatives. 7IN will leverage best practices from the global 7-Eleven network to continue to drive the c-store experience for customers.
• Accelerating ESG progress: This acquisition advances the Seven & i Holdings' "Green Challenge 2050" goals for CO2 reduction and sustainability by synergizing expertise and expediting the adoption of sustainable practices across local and global markets.

The transaction is subject to customary regulatory approvals and closing conditions and is expected to be completed in the second quarter of 2024. 7IN is being advised on the transaction by BofA Securities Inc., Nomura Securities International Inc., Baker McKenzie, and Nishimura & Asahi.  

Globally, the 7-Eleven trademark is represented in more than 84,000 stores in 20 countries and regions. 7-Eleven International master franchises and/or licenses approximately 48,000 stores in 16 countries and regions. 

Irving, Texas-based 7-Eleven Inc. operates, franchises and/or licenses more than 15,000 stores in the United States, Canada and Mexico. Seven-Eleven Japan Co. Ltd. operates and franchises more than 21,000 stores in Japan.