Tokyo skyline
Tokyo skyline ()

Simpson Thacher & Bartlett is representing Kohlberg Kravis Roberts & Co. on a $1.3 billion acquisition of Japanese conglomerate Hitachi Ltd.’s power tools manufacturing unit.

Hitachi announced in December that it was considering selling a non-core business, such as Hitachi Koki, 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.

Hitachi is the latest Japanese corporation to divest non-core assets in order to boost profitability. It is also KKR’s second billion-dollar deal in three months, following the $4.5 billion November acquisition of auto parts maker Calsonic Kansei Corp. from Nissan Motor.

KKR launched its record $6 billion Asia Fund II in 2013, and according to Reuters, the U.S. buyout firm is now preparing for a third Asia fund that could raise $7 billion.

The New York-based private equity house is advised by longtime adviser Simpson Thacher with a team led by Tokyo office head David Sneider, who has led several Japan deals for KKR, including the Calsonic Kansei buy in November.

Japanese firm Nishimura & Asahi is acting as local counsel to KKR.

Mori Hamada & Matsumoto is representing Hitachi on the deal.

Email: azhang@alm.com.

Simpson Thacher & Bartlett is representing Kohlberg Kravis Roberts & Co. on a $1.3 billion acquisition of Japanese conglomerate Hitachi Ltd. ‘s power tools manufacturing unit.

Hitachi announced in December that it was considering selling a non-core business, such as Hitachi Koki, 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.

Hitachi is the latest Japanese corporation to divest non-core assets in order to boost profitability. It is also KKR’s second billion-dollar deal in three months, following the $4.5 billion November acquisition of auto parts maker Calsonic Kansei Corp. from Nissan Motor.

KKR launched its record $6 billion Asia Fund II in 2013, and according to Reuters, the U.S. buyout firm is now preparing for a third Asia fund that could raise $7 billion.

The New York-based private equity house is advised by longtime adviser Simpson Thacher with a team led by Tokyo office head David Sneider, who has led several Japan deals for KKR, including the Calsonic Kansei buy in November.

Japanese firm Nishimura & Asahi is acting as local counsel to KKR.

Mori Hamada & Matsumoto is representing Hitachi on the deal.

Email: azhang@alm.com.