Bain Capital plans to take Seven & i Holdings’ supermarket and retail business public in about three years, following efforts to enhance synergies and expand operations, according to Bain partner Naofumi Nishi.

The U.S. private equity firm also aims to scale up the business through acquisitions, targeting rival supermarket chains and technology firms to accelerate digital transformation. “The food supermarket sector remains fragmented and benefits from economies of scale. We are actively considering acquisitions if opportunities arise,” Nishi told Reuters.

On Thursday, Bain secured a deal to acquire York Holdings, Seven & i’s non-core supermarket operations, for ¥814.7bn ($5.5bn). As part of the transaction, Seven & i and its founding families will reinvest to retain a 40% stake in York. The portfolio includes 29 subsidiaries, notably the Ito-Yokado grocery chain, baby goods retailer Akachan Honpo, and Japan’s Denny’s restaurant franchise.

Bain, which recently joined the UK Private Equity Conference in London, has no immediate plans for management or business restructuring, Nishi said, emphasizing that York’s prime store locations and growth potential make it a strong asset.

This acquisition adds to Bain’s growing presence in Japan’s retail and consumer goods sector, following recent buyouts of outdoor brand Snow Peak and Gelato Pique owner Mash Holdings.

Japan has become a hotspot for private equity activity, with firms such as Bain, KKR, and Blackstone increasingly targeting companies with underutilized assets or corporate governance inefficiencies. Bain competed against KKR and Japan Industrial Partners in the final bidding round for York Holdings.