KKR to buy Hitachi’s power tools unit for $1.3 billion

A logo of Hitachi Ltd. is pictured at CEATEC (Combined Exhibition of Advanced Technologies) JAPAN 2016 at the Makuhari Messe in Chiba, Japan, October 3, 2016.   REUTERS/Toru Hanai

U.S. private equity firm KKR & Co LP (KKR.N) has agreed to buy Japanese conglomerate Hitachi Ltd’s (6501.T) power tools unit, Hitachi Koki Co Ltd (6581.T), for about $1.3 billion, the companies said on Friday.

KKR will launch a tender offer for Hitachi Koki at 870 yen per share, costing it 88.2 billion yen. Including a special dividend of 580 yen per share upon success of the tender offer, KKR will pay a total of 147.1 billion yen ($1.28 billion).

Hitachi said last month it was considering selling Hitachi Koki.

[Source:- Reuters]

About The Author