KKR Divests Seiyu Stake To Trial Holdings In $2.5 Billion Deal

by Lekha Gupta Benzinga Editor

Zinger Key Points

KKR to sell Seiyu supermarket chain to Trial Holdings for $2.5B.
The sale reflects KKR’s strategic efforts in Japan, having acquired Seiyu’s majority stake in 2021 and increased ownership in 2023.
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KKR & Co. Inc. KKR shares are trading higher premarket on Wednesday. The company disclosed definitive agreements to sell the Japanese supermarket chain Seiyu to Trial Holdings, Inc. for 380 billion yen ($2.5 billion).

This transaction marks a significant milestone for KKR and reflects the substantial efforts made to position Seiyu for ongoing success.

In 2021, KKR acquired a 65% majority stake in Seiyu from Walmart. It later increased its ownership by acquiring an additional 20% stake from Rakuten in 2023. This brought KKR’s total shareholding to 85%.

As part of the current transaction, Walmart will also divest its 15% stake in Seiyu to Trial.

KKR made its investments in Seiyu through its Asian Fund IV.

The transaction is anticipated to close in the second quarter of 2025, pending regulatory approval and customary closing conditions.

Seiyu CEO Tsuneo Okubo said the company has “leveled up” its merchandising strategies and in-store operational capabilities while reinvesting in stores, employees, and IT capabilities.

Also, Darwinbox inked definitive deals for a $140 million investment. Partners Group, representing its clients, and KKR, a leading global investment firm, will co-lead the funding, with additional participation from Gravity Holdings.

KKR has priced its offering of $2.25 billion (45 million shares) in 6.25% Series D Mandatory Convertible Preferred Stock at $50.00 per share, up from the originally planned $1.50 billion (30 million shares).

The underwriters have a 30-day option to purchase an additional $337.5 million (6.75 million shares) to cover any over-allotments.

The offering is expected to close on March 7, 2025, subject to customary conditions.

KKR also entered into definitive agreements with CVC to become the largest shareholder in Healthcare Global Enterprises (HCG) and take full operational control for $400 million.

Investors can gain exposure to the stock via FM Focus Equity ETF FMCX and EA Series Trust WHITEWOLF Publicly Listed Private Equity ETF LBO.

Price Action: KKR shares are up 0.76% at $121.65 premarket at the last check Wednesday.

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