KKR to sell Seiyu to Trial Holdings

TOKYO: Leading global investment firm KKR and Japanese supermarket chain Seiyu have entered into definitive agreements to sell Seiyu to Trial Holdings, Inc., a prominent distribution and retail business operator in Japan. Trial operates a network of stores in Kyushu, providing “everyday essentials.”

KKR acquired a 65% majority stake in Seiyu from Walmart in 2021, followed by an additional 20% stake from Rakuten in 2023, increasing its shareholding to 85%. As part of the transaction, Walmart will also sell its 15% stake to Trial.

During their ownership, KKR and Walmart collaborated closely to support Seiyu’s growth by enhancing operational efficiency, product quality, selection, profitability, and productivity through technology adoption. Since 2021, Seiyu has benefited from several value creation efforts, including improving product quality, developing standard operational processes, and adopting technological solutions like self-checkout and automatic restocking systems.

Hiro Hirano, Deputy Executive Chairman of KKR Asia Pacific and CEO of KKR Japan, expressed pride in their achievements with Seiyu, highlighting the collaboration with Walmart and Rakuten. “Seiyu serves as an outstanding example of how global investors with deep local knowledge, global connectivity, and know-how can help iconic Japanese brands 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.”

Tsuneo Okubo, CEO of Seiyu, thanked their longstanding shareholders for their support, noting the substantial value created for customers and the business. “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’s investments in Seiyu were made from its Asian Fund IV. The transaction is expected to close in the second quarter of 2025, subject to regulatory and customary closing conditions.

Established in 1963, Seiyu operates over 240 retail units in Japan, offering a broad assortment of fresh food, general merchandise, and apparel products through its supermarket and hypermarket formats, as well as its Seiyu Netsuper delivery service.