Global private equity (PE) powerhouse KKR has closed its deal for a 100% stake in Japanese multinational conglomerate Hitachi’s logistics subsidiary Hitachi Transport System (HTS), as per a company announcement on Wednesday.
In addition to the shares acquired during the cash tender offer worth 51.11%, KKR will buy the remaining shares of HTS through a squeeze-out process combined with a buyback by HTS of the shares held by parent company Hitachi, resulting in KKR’s full acquisition of HTS. The settlement of the tender offer will begin on December 6.
HTS will be renamed to LOGISTEED beginning April 2023, according to the company statement.
The value of the deal is $670 billion yen ($4.8 billion), according to Reuters’ calculations. In September, it was reported that the deal was delayed from its initial plan to start in end-September.
The offer will be financed predominantly by KKR’s Asia IV Fund. The fund was closed by KKR in April last year at $15 billion and focuses on PE investments across the Asia-Pacific.
The PE giant said it will be utilising its “global network and expertise to help Hitachi Transport System become the leading 3PL (third-party logistics business) company in Asia”, said Hiro Hirano, co-head of PE for KKR Asia Pacific and chief executive officer of KKR Japan in the statement.