KKR & Co in talks to buy Hitachi's power tools unit in a deal worth over $1.3 bn
28 Dec 2016
US private equity firm KKR & Co is in talks to buy Hitachi Ltd's power tools unit Hitachi Koki Co, in a deal that could be worth over $1.3 billion, Nikkei business daily reported.
Reacting to the report, Hitachi today said that it was considering various options to strengthen its business, including the sale of Hitachi Koki, but that nothing had been decided.
''No formal decision has been made in this regard currently, while Hitachi is considering the growth strategy of Hitachi Koki, including transferring the shares of Hitachi Koki. After the decision has been taken Hitachi will announce it in a timely manner.''
The sale would help Hitachi, which owns 51.2-per cent of Hitachi Koki's voting rights, to focus on its core business segments such as infrastructure, the report said.
Bloomberg had in October reported that Hitachi was considering a sale of its controlling stake in Hitachi Kokusai Electric Inc, which produces equipment for semiconductor makers and wireless-network gear manufacturers.
Founded in 1948, Hitachi Koki manufactures power tools and life-science instruments.
The Tokyo-based company makes metalworking power tools, woodworking power tools, cordless power tools, construction power tools, pneumatic tools, woodworking machines, outdoor power equipment, gardening tools, household power tools, dust collectors, measure laser tools.
It also makes ultracentrifuge, high-speed refrigerated centrifuge, micro centrifuge, large-scale continuous flow ultracentrifuge under its Life-Science Instuments unit.