Withers and Barlow families sell 7-Eleven Australia to the brand’s international arm for $1.71bn

More than 750 7-Eleven stores across Australia will come under control of the convenience retailer’s international arm after the two families who bought the company to Australia agreed to sell.

The two rich-lister families behind the 7-Eleven chain in Australia have sold their business for $1.7bn.

The convenience group’s global arm, 7-Eleven International LLC (7IN), will acquire a 100 per cent stake in 7-Eleven Australia from the Withers and Barlow families, which have been associated with the retailer for more than four decades.

The 7-Eleven Australia business will be operated as a wholly owned subsidiary of 7IN – which is a joint venture of 7-Eleven Inc and Seven-Eleven Japan – and will be headquartered in Melbourne.

The acquisition means the Australian business will be able to tap into the global network of 46,000 master franchises and/or licences in 16 countries and ­regions.

Speaking on behalf of shareholders, Russell Withers said the families had been associated with the 7-Eleven brand since they brought it to Australia in 1977.

“From a single store in suburban Melbourne, 7-Eleven has grown to a network of over 750 stores across Victoria, NSW, ACT, Queensland and Western Australia, processing 250 million transactions each year, and employing more than 9000 people across the corporate and franchise network,” he said. “The company has made significant progress in recent years on several fronts and is performing well under a highly credentialed management team.

“Now is the right time for our families to pass the business to new owners to continue to build and develop this wonderful brand. We’re confident that 7IN will be strong custodians of the business and support the future growth and success of 7-Eleven as the first choice in convenience retailing in Australia.”

The business does not operate in Tasmania, the Northern Territory and South Australia. This creates growth opportunities for 7IN, which is responsible for the brand’s global growth strategy.

The current Australian management team will continue to lead the business under new ownership. The offer is subject to regulatory approval, with a completion likely to take place in the second quarter of 2024.

The Australian 7-Eleven business and its shareholders have been advised by Azure Capital and Ashurst which started the sale process earlier this year.

Among the groups in the second round of the sale process were private equity firm Platinum Equity, Ampol and an Asian group advised by PwC, which was not believed to be private equity.

7IN co-chief executive Shin Abe said the acquisition demonstrated the company’s commitment to growing 7-Eleven’s operations globally.

“We are looking forward to continuing to enhance the 7-Eleven brand in Australia, which enjoys a longstanding presence and unrivalled brand recognition with customers,” he said.

7-Eleven Australia chief executive Angus McKay said the acquisition was a vote of confidence in its staff and strategy.

“The business has strong momentum and an exciting outlook for growth. Our customers will continue to come first and we will remain focused on the transformation of our total merchandise and fuel offer, the evolution of our convenient food proposition, digital and format innovation, as well as the roll out of new stores,” he said.

Earlier this year The Australian reported that Mr Withers and the family of his late sister Beverley Barlow could reap $2bn or more from the sale of the nation’s largest convenience and fuel retailers. At the time it was reported that it made more than $4.5bn in annual sales.

The business was in the spotlight in 2015 for underpaying wages to some staff.