Seven & i Holdings, the Japanese retail giant known for its 7-Eleven stores, has selected Bain Capital as the preferred bidder for a significant portion of its non-core assets. This decision comes as the company aims to streamline operations by spinning off these assets into a new entity named York Holdings.

York Holdings will include 31 subsidiaries, which feature various supermarket and superstore units. Notable brands within this spin-off include Akachan Honpo, a retailer specializing in baby products, and the Japanese operator of Denny's restaurants. This restructuring allows Seven & i to concentrate on its core retail business.

The global supermarket sector has been on a steady growth path, making the assets in York Holdings attractive to private equity firms. Bain Capital has emerged as the leading bidder, reportedly offering over 700 billion yen (around $4.7 billion) for the stake, outpacing competitors like KKR and Japan Industrial Partners.

This strategic divestiture reflects a broader trend among large corporations to focus on their primary operations while shedding less critical segments. By doing so, Seven & i Holdings aims to enhance profitability and operational efficiency in a rapidly changing global market.