Hitachi to sell $1.6 billion Hitachi Transport stake to KKR, Nikkei says
April 21, 2022 at 06:36 am
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TOKYO (Reuters) - Hitachi Ltd is planning to sell most of its 40% stake in Hitachi Transport System Ltd to U.S. private equity firm Kohlberg Kravis Roberts (KKR) for $1.56 billion, the Nikkei newspaper reported on Thursday.
Hitachi will retain a 10% stake in the logistics company while KKR is expected to launch a takeover bid to acquire the remaining 90%. KKR is expected to spend more than 600 billion yen ($4.69 billion) on the deal to take Hitachi Transport private, Nikkei said.
($1 = 127.9400 yen)
(Reporting by Rocky Swift; Editing by David Goodman)
Hitachi specializes in manufacturing and marketing of electronic and industrial equipments. Net sales (including intragroup) break down by family of products and services as follows:
- social infrastructure and industrial systems (24.7%): elevators, escalators, industrial facilities, railway systems, power generation units, etc. The group also provides engineering and construction of nuclear, hydroelectric, and thermal power plants services;
- information and telecommunications products and services (20.1%): systems integration, cloud computing, software, servers, hard disks, PCs, ATMs, data communication base stations, payment terminals, etc.;
- materials and components (16.6%): semi-conductor materials, printed circuit cards, cables, copper and forged steel products, magnetic materials, organic and inorganic chemical products, etc.;
- construction equipment (10%) : hydraulic excavators, wheel loaders, mining equipment, etc.;
- automotive systems (9.4%): powertrain systems, control systems, etc.;
- electronic products (9.2%): fiber-optic components, screen tubes, testing and measurement equipment, medical equipment, equipment for manufacturing semiconductors, etc.;
- household appliances (4.7%): heating and air conditioning equipments, refrigerators, washing machines, etc.;
- other (5.3%): mainly transport, financial and logistical services.
Net sales are distributed geographically as follows: Japan (49.2%), Asia (21.3%), North America (12.7%), Europe (10.8%) and other (6%).