Houlihan Lokey Advises Fortress Investment Group

Houlihan Lokey is pleased to announce that Fortress Investment Group (Fortress) has acquired Sogo & Seibu Co., Ltd., from Seven & i Holdings Co., Ltd. (Seven & i) for USD 1.5 billion. Houlihan Lokey acted as the sole financial advisor to Fortress.

Fortress is a leading, highly diversified global investment manager with approximately USD 44.7 billion of assets under management as of June 30, 2023. Founded in 1998, it manages assets on behalf of more than 1,900 institutional clients and private investors worldwide across a range of credit and real estate, private equity, and permanent capital investment strategies.

Founded in 1969, Sogo & Seibu is Japan’s third largest department store operator with revenues of approximately JPY 450 billion and 10 stores situated in prime locations across the country. Acquired by Japan’s largest retail conglomerate, Seven & i, in 2006, it offers a wide range of consumer goods and services, from high-end merchandise to daily necessities. The company traces its historical roots to 1830.

Seven & i is a listed multinational retail group company headquartered in Tokyo, which owns 7-Eleven, the world’s largest convenience store chain. With revenue of approximately JPY 11.8 trillion (approximately USD 80 billion), it operates approximately 85,000 stores in nearly 20 countries and territories worldwide. Originally founded in 1920 as Ito-Yokado, a general merchandise retail chain, it acquired majority control of 7-Eleven in 1991 and Speedway, a U.S. gas station and convenience store chain, in 2020.

Fortress will revamp the operations of Sogo & Seibu department stores in major cities across Japan by teaming up with Yodobashi Holdings Co., Ltd. (Yodobashi), a leading Japanese consumer electronics, PC, and camera retailer. Plans include introducing new Yodobashi outlets in key locations and renovating flagship stores such as Seibu Ikebukuro, which is adjacent to Ikebukuro Station, the third busiest station in the world with daily ridership of nearly 2.7 million.

Seven & i will focus on further growing its convenience store business after the transaction.

This is the largest transaction in the Japanese retail sector since 2021, demonstrating Houlihan Lokey’s distinguished sector expertise in the retail and consumer space, strong relationships with established leading corporates in the field, and exceptional deal-origination capabilities in a changing market environment.