KKR, a global investment firm, and Rakuten Group, Inc., (“Rakuten”) announced the signing of definitive agreements under which a fund managed by KKR will purchase Rakuten’s stake in Seiyu (the “Company”), a leading, nationwide supermarket chain in Japan. With this purchase, KKR increases its stake in Seiyu from 65% to 85%
Following this transaction, Rakuten will continue to be an important strategic partner to Seiyu and will work closely with the Company’s management and shareholders to further strengthen Seiyu’s offering to customers, prioritizing value and convenience, the statement said.
Hiro Hirano, Co-Head of Private Equity for KKR Asia Pacific and CEO of KKR Japan, said, “We are pleased to deepen our relationship with Seiyu, an iconic Japanese brand in which we continue to see strong promise. We look forward to unlocking the company’s full potential through the continued strategic partnership with Rakuten and Walmart, which brings together our respective expertise in investing behind a company’s growth, global best-in-class practices, and thoughtful customer experience. Together, we remain focused on helping Seiyu continue to deliver greater value and convenience to its customers across Japan and maintain its strong growth.”
Tsuneo Okubo, President and Representative Director of Seiyu Holdings Co. and Seiyu Co., Ltd., said, “Seiyu aims to become Japan’s No. 1 supermarket and online supermarket by 2025, in line with our medium-term management plan, building on the new management structure introduced in 2021. Seiyu is focused on building a virtuous cycle of investment in our human capital, information systems, and stores, with greater profits and value generated through better quality products and strengthened sales capability. While maintaining our philosophy of “Every Day Low Price,” we strive to provide services and products that increase customer satisfaction through improved freshness and quality. We are pleased that our operating income in FY22 saw a 50% year-on-year growth, which is evidence that our business transformation program is progressing well. Through our ongoing strategic partnership with Rakuten, we will continue to strengthen our digital marketing and aim to become the leading OMO retailer in Japan.”
Kazunori Takeda, Director and Group Executive Vice President and President of Commerce & Marketing Company, Rakuten Group, Inc., said, “With the strong support and retail expertise of KKR, our collaboration with Seiyu has been extremely fruitful, with strong growth in the popular Rakuten Seiyu Netsuper online grocery delivery service, introduction of Rakuten cashless payment options and strengthening customer acquisition programs and product promotions by utilizing Rakuten Points. We will continue working together to deliver greater levels of convenience to our customers.”
KKR is making its investment from its Asian Fund IV.
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