KKR $1.3 billion acquisition of Hitachi Unit

Overview:

• Private equity firm Kohlberg Kravis Roberts & Co (KKR) has acquired Japanese conglomerate Hitachi's power tools manufacturing unit—Hitachi Koki—for $1.3 billion.
• Hitachi has been considering selling non-core businesses in order to focus on its main businesses, which include facilities and equipment for the oil and gas industry and public transportation.
• Tokyo-listed Hitachi Koki makes power tools and equipment for home and industry use.
• The deal is part of a trend where Japanese corporations divest non-core assets to boost profitability, and it is KKR's second Japanese billion-dollar deal in three months, following the $4.5 billion acquisition of auto parts maker Calsonic Kansei from Nissan Motor. 

Adam Majeed - Regional editor