7-Eleven’s Australian arm has been sold to 7-Eleven International LLC (7IN) in a deal worth $1.71 billion.
The Australian business processes around 250 million transactions each year across roughly 750 stores and supports the employment of more than 9,000 people across the corporate and franchise networks.
The 7-Eleven Australian business will be operated as a wholly owned subsidiary of 7IN, headquartered in Melbourne, with the current management team continuing to lead the business under new ownership.
Seven & I, the parent company of 7IN, stated that it intends to establish itself as the clear industry leader in the Australian convenience store market, and it believes there is significant growth potential and the ability to open new stores across the country.
“By utilising the product strength and operational know-how of the business cultivated in Japan and North America and experience cultivating synergies through 50 M&A transactions since 2005, the company expects that it will be able to increase product sales and improve gross product margin, further reduce costs, strengthen the customer base, and realise further innovation and an even greater increase in corporate value,” said Seven & I Holdings in a statement.
7-Eleven Australia appears to have impressed the Japanese company with its focus on its food offering, as the company looks towards offering a world-class retail offering that is centred around food as its ideal group image for 2030.
Michael Smith, Chairman of 7-Eleven Australia, said that 7IN sees the potential of the 7-Eleven Australia business and shares their vision to be the first choice in convenience retailing in Australia.
“They bring a strong understanding of the convenience market globally and will continue to draw on 7&I Holdings’ capabilities in product development capabilities, digital technology, and environmental, social, and governance (ESG) initiatives to further strengthen the 7-Eleven brand in this market.”
Commenting on behalf of the shareholders of 7-Eleven Australia, Russell Withers said now is the right time for their families to pass the business to new owners to continue to build and develop this wonderful brand.
“The Withers and Barlow families have had a proud association with the 7-Eleven brand since we brought it to Australia in 1977. From a single store in suburban Melbourne, 7-Eleven has grown to a network of over 750 stores across Victoria, New South Wales, ACT, Queensland and Western Australia, processing 250 million transactions each year, and employing more than 9,000 people across the corporate and franchise network.
“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 in Australia has been owned by the Withers and Barlow families since 1976 when they signed the area licence agreement to bring the brand to Australia, before opening the first store in Oakleigh, Victoria in 1977.