Home » 7-Eleven Australia’s family owners sell for $1.71b

7-Eleven Australia’s family owners sell for $1.71b

Sources said underbidders Platinum and Ampol went deep into the second round, but couldn’t match the winning bid’s price or terms. The deal valued the Australian business at about 8-times historical EBITDA, on an enterprise value to earnings basis.

The signed deal is a coup for all involved, particularly given the tough market for transactions more broadly. The Withers and Barlow families can move on, having been rumoured to be looking at their sale options for years. Their advisers – Azure Capital’s David Flynn, who is close to the families, and Ashurst lawyers John Brewster and Brooke Coghlan, fresh from a bunch of other tough transactions like Cobham Aviation’s sale – did well to drum up the bids and overcome some suitors’ fears about earnings from petrol and cigarettes.

The sale pitch was all about 7-Eleven as a retailer with a fuel offering, rather than a petrol station business selling chocolate bars. Potential buyers were told that 60 per cent of 7-Eleven customer visits did not include a fuel purchase, while it had up to two-times the sales and foot traffic of its peers.

For years, equity capital markets bankers had tried to lure 7-Eleven to the ASX boards. With the sale to Seven & I Holdings signed and sealed, they finally have to take it off their lists of future billion-dollar floats.