Four years after Walmart sold a majority stake in Japanese grocery retailer Seiyu for $1.6 billion, it is selling the remainder of its ownership to Trial Holdings in a deal valued at around $2.54 billion. Walmart’s 15% stake would be worth about $375 million.
The partners signed agreements to sell Seiyu on March 5. Trial Holdings is a retail and distribution company in Japan that operates a network of stores selling general merchandise on the Japanese island of Kyushu.
The deal is expected to close in the second quarter of this year subject to regulatory and customary closing conditions. Walmart did not comment on the pending divestiture but did post the release on its corporate blog site Wednesday.
Since 2001, KKR and Walmart have worked to grow Seiyu sales with technology and operational improvements.
“We would like to thank our longstanding shareholders, including KKR and Walmart, for their support, which has enabled us to create substantial value for our customers and 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,” said Seiyu CEO Tsuneo Okubo.
Walmart spent more than $2 billion for control of Seiyu in 2008 after first investing in 2006 with a minority 6% stake in the retail business. While Walmart had hoped the business would grow, by 2014 the retailer closed 30 stores and continued to try and revamp the business. By 2018, Walmart execs were rethinking the international footprint.
Walmart CEO Doug McMillon said in late 2024 that downsizing the retail giant’s international footprint was not an easy decision to make because it was admitting failure or giving up on a business unit. But once Walmart made the decision to exit Brazil in June 2018 and made a deal to sell its 80% stake to Advent International, he said it was like oxygen was breathed into the rest of the business. He said exiting the United Kingdom, Argentina and Japan came easier because it freed up talent and capital to invest in growth markets like Mexico, Canada and India.