The Australian arm of the 7-Eleven convenience store chain has been sold by the Withers and Barlow families, after being put up for sale earlier this year.
Japanese-based parent company 7-Eleven International LLC (7IN) is paying $1.7 billion for the chain of 752 Australian stores.
According to The Australian’s 2023 Rich 250, the Withers and Barlow families, who are related, were ranked 62nd with an estimated net worth of $2.11 billion.
In a statement, former chairman of 7-Eleven Australia, Russell Withers said:
“The Withers and Barlow families have had a proud association with the 7-Eleven brand since we 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, New South Wales, ACT, Queensland and Western Australia, processing 250 million transactions each year, and employing more than 9,000 people across the corporate and franchise network.”
He added: “Now is the right time for our families to pass the business to new owners to continue to build and develop this wonderful brand.”
There are currently no 7-Eleven stores in Tasmania, the Northern Territory and South Australia, presenting an opportunity for 7IN, which plans to expand the Australian business by opening around 35 stores a year.
7-Eleven – the home of the Slurpee – currently has a market share of about 32 per cent of the convenience store market in Australia.
Mr Withers stepped down as chairman in 2015 after some franchisees were caught underpaying its staff.
The company back paid $173.6 million in wages, interest and superannuation to 4043 franchise employees following an investigation by the Fair Work Ombudsman.
The families also operate the Starbucks chain in Australia.
7-Eleven Australia CEO Angus McKay said that while cost-of-living pressures have resulted in a minor slowdown in sales growth, foot traffic for the business is still solid.
According to its most recent financial results, pre-tax profits for the year to June 30, 2023 increased from $36.6 million to $85.1 million for the Australian business.
The current Australian management team will continue to lead the business under its new owners, and the deal is subject to regulatory approval, with a completion likely to take place in the second quarter of 2024.
