JAPAN | KKR, a global investment firm, and Seiyu, a nationwide supermarket chain in Japan, announced the signing of definitive agreements to sell Seiyu to Trial Holdings, Inc.
Trial Holdings Inc. is a distribution and retail business operator in Japan that operates a network of stores offering “everyday essentials” in Kyushu. This transaction represented a significant outcome for KKR and followed transformational work that positions Seiyu firmly for continued success.
KKR first acquired a 65 percent majority stake in Seiyu from Walmart in 2021, before acquiring an additional 20 percent stake from Rakuten in 2023, taking KKR’s shareholding to 85 percent. As part of the transaction, Walmart will also sell its 15 percent stake to Trial.
“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,” said Hiro Hirano, deputy executive chairman of KKR Asia Pacific and CEO of KKR Japan.
“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. We are confident that Seiyu is well-placed to build on its achievements and wish the company and Trial continued success.”
As committed investors in Seiyu, KKR and Walmart have collaborated closely to support Seiyu’s growth by focusing on improving operational efficiency, product quality and selection, profitability, and productivity through technology adoption.
Since 2021, Seiyu has benefited from a range of value creation efforts, such as improving the quality and selection of products, especially for fresh produce, delicatessen, and Seiyu’s popular in-house brands, which are all major revenue drivers for Seiyu.
It has also developed standard operational processes and adopted technological solutions, such as self-checkout and automatic restocking systems, to aid workers, leading to solid man-hour productivity increases.
By optimising its product assortment and distribution strategies, Seiyu was transformed from a traditional General Merchandise Store (GMS) into a “supermarket.”
“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,” said Tsuneo Okubo, CEO of Seiyu.
“Over the past few years, we have leveled up our merchandising strategies and in-store operational capabilities while reinvesting 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 invested in Seiyu from its Asian Fund IV. Subject to regulatory and customary closing conditions, the transaction is expected to close in the second quarter of 2025.
