7-Eleven Parent Company to Pursue IPO, Other Strategic Initiatives
Seven & i Holdings Co. Ltd. announced an array of major strategic initiatives following a March 6 board meeting, including the pursuit of an initial public offering (IPO) of 7-Eleven Inc. in North America and the appointment of a new CEO, its first foreign leader.
The goal of these "transformational leadership, capital and business initiatives" is to enhance focus on the company's convenience store business while unlocking and distributing significant values to shareholders, the company said in a released statement. The initiatives will be supported by making progress on previously announced initiatives that are already underway.
"The group is executing key actions that are concrete, actionable, and value accretive. We have been on a journey to explore opportunities that create the most value for our shareholders and enhance our customers' experiences around the world," said outgoing President and CEO Ryuichi Isaka. "This is the right time to move these initiatives forward, and the management team is excited to execute our transformation strategy while remaining focused on identifying avenues to continue driving shareholder value."
Seven & i plans to pursue the 7-Eleven IPO on a major U.S. stock exchange by the second half of 2026. This will create two independent companies that maintain synergies, as Seven & i will retain majority share of 7-Eleven.
The company noted that an independent 7-Eleven will have "increased financial flexibility and greater decision-making autonomy to capitalize on its market leadership as the largest convenience store chain in the attractive North American market with strong brand recognition and best-in-class digital offering in the industry."
New Leadership for Changing Times
Stephen Hayes Dacus, previously chairman of the board and lead independent outside director at Seven & i, will succeed Isaka as president, representative director and CEO, effective following the company's annual general meeting in May. Isaka will continue to serve as a senior advisor to Seven & i.
A member of the board since May 2022, Dacus was appointed chairman and lead independent outside director in April 2024. He has played an "integral" role in overseeing the company's value creation strategy as chairman of the strategy committee and chairman of the special committee. He also speaks Japanese fluently and has significant executive, financial and operational experience working with consumer and retail companies in Japan and globally, according to Seven & i.
Dacus also chaired the special committee created to evaluate a nonbinding, reportedly $47 billion takeover bid for Seven & i from Laval, Quebec-based Alimentation Couche-Tard Inc., and will be replaced on it by fellow member and independent outside director Paul Yonamine. Talks regarding the potential acquisition will continue, but Dacus highlighted the significant regulatory challenges that could block a deal.
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"What I do not think our shareholders would want is for us to spend two-plus years in limbo just for that to be rejected by the U.S. courts," Dacus told reporters following the announcement of his appointment.
The special committee endorsed the new initiatives based on the current state of the company.
"The initiatives management has announced today are crucial steps in simplifying our group structure and unlocking shareholder value," Dacus stated. "As there is no assurance that a third-party transaction will ever become actionable or be in the best interest of the group's shareholders and other stakeholders, the special committee fully endorses these management initiatives to unlock shareholder value at this time."
Additional strategic initiatives Seven & i plans to take include:
- Signing a definitive agreement to sell its superstore business group — which includes grocery retail, specialties and other retail businesses — to a Bain Capital-owned special purpose company for $5.37 billion, while rolling over 35% of equity holdings. The deal is expected to close in September 2025.
- Using proceeds of the sale to Bain and the 7-Eleven IPO to repurchase approximately $13.2 billion in share buybacks that return the aggregate capital to shareholders, providing greater certainty in return to capital. Buybacks are expected to commence at the close of the superstore business group sale and conclude by fiscal year 2030. Seven & i will also implement a progressive dividend policy, under which it will continue to maintain or increase per share dividend amount over time for cashflow generated from ordinary business operation.
- Exiting ownership of Seven Bank and further enhancing execution of its convenience business. Seven & i will sell down its ownership stake to below 40% and deconsolidate from its balance sheet. Throughout the process, it will continue to access additional alternatives for its shares in Seven Bank that may unlock value for shareholders at an accelerated pace. Seven & i will also continue to pursue its c-store business performance acceleration plan and execute disciplined merger-and-acquisition activity.
Seven & i subsidiary 7-Eleven Inc. operates, franchises and/or licenses more than 13,000 stores in the United States and Canada. In addition to 7-Eleven stores, it operates and franchises Speedway, Stripes, Laredo Taco Co., and Raise the Roost Chicken and Biscuits locations.
This article was originally covered in sister publication Convenience Store News.
