Bain Capital Agrees to Take Over the SST Business of Seven & i Holdings
We announce that Bain Capital Private Equity, LP (including its Group; hereinafter “Bain Capital”) and Seven & i Holdings Co., Ltd. (hereinafter “Seven & i HD”) have decided today to conduct a transaction (hereinafter the “Absorption-type Split”) to succeed, through an absorption-type split, the main office functions of York Holdings (hereinafter “York HD”), subsidiary management functions, and assets such as subsidiary shares belonging to its its food supermarket operations and specialty stores, etc. (hereinafter the SST Operations Group”), and have thereby entered into a final agreement including an agreement to implement the Absorption-type Split and partial re-investment by Seven & i HD.
York HD is a wholly-owned subsidiary of Seven & i Holdings, founded in 202410 (October 2024) as an intermediate holding company, that unites subsidiaries and affiliates in the superstore business (Ito-Yokado and York-Benimaru) and specialty stores (Loft, akachan honpo, Seven & i Food Systems, which operates Denny's family restaurants, etc.). Currently, they are responsible for the head office and subsidiary management functions of 29 companies that operate these businesses.
Ito-Yokado has enjoyed continued growth for decades since its foundation in 1920,100 providing values to the community and the lives of its customers, with a focus on food, in line with the philosophy of “being a sincere company that earns the trust of various stakeholders, including customers, business partners, and employees.
York-Benimaru operates a community-based superstore business with a dominant presence in the Tohoku and northern Kanto regions. They support the lives of local residents through the sale of high-quality products including fresh foods, prepared foods and other groceries, daily sundries, housing-related products, and clothing.
In addition to the superstore business described above, York HD operates specialty store businesses such as Loft and akachan honpo, and the restaurant chain Denny's. As a general retailer that supports customers' clothing, food, and home needs and enriches their daily lives, York HD is a leader in the retail and consumer goods industry.
Naofumi Nishi, a Bain Capital Partner, says:
“The SST Business Group is a group of Japan's leading companies that have made great strides as general retailers supporting our daily lives, centering on Ito-Yokado, which has a history of more than 100 years, York-Benimaru, which is loved by local residents as the “community's kitchen,” Loft, akachan honpo, Denny's, and others. We are very pleased to have the opportunity to work with such a group and support their further growth. Bain Capital will work in close partnership with the Group to leverage our experience and knowledge in the global and Japanese retail and consumer goods industries to support the company's continued growth. In addition, we will work closely with our in-house team of real estate management experts to provide full support in a variety of areas, including attracting tenants to the facilities operated by the Group, in order to maximize the value of the facilities under their management.
Bain Capital has extensive experience supporting businesses in the retail and consumer goods sectors, including drugstore chains such as Kirindo, Dollarama, a 1 dollar store operator in Canada, as well as brand and specialty retailers such as MASH Holdings, Snow Peak, and Canada Goose. Drawing on knowledge that Bain Capital has cultivated in this sector, Bain Capital will support the SST Business Group in further strengthening its operational base and accelerating its medium-to long-term business growth, in partnership with the management and employees.
Bain Capital’s financial advisors are BNP Paribas (lead), Citigroup Global Markets Japan Inc., and Mizuho Securities Co., Ltd., and its legal advisors are Anderson Mori & Tomotsune and Ropes & Gray LLP.
About Bain Capital Private Equity
Bain Capital is an international investment firm that creates lasting impact on and for investors, teams, businesses, and communities. Since its foundation in 1984, Bain Capital has leveraged insight and experience to achieve intrinsic growth in a number of investment areas, including private equity, credit, public equity, venture capital, real estate, life sciences, insurance, and other strategic focus areas. On 4 continents, the firm has 24 offices and over 1,850 employees, with approximately US$ 1,850 million in assets under management. For more information on Bain Capital, please visit www.baincapital.comLinkedIn and X (Twitter).
