KKR to Buy Most of Hitachi Transportation Unit, Nikkei Says

Shoko Oda, Bloomberg News

The logo of Hitachi Ltd. displayed at the company's headquarters in Tokyo, Japan, on Jan. 18, 2022. Hitachi is ready to sell its 40% stake in Hitachi Transport System but wants to find the right industry partner, according to Chief Executive Officer Toshiaki Higashihara. Photographer: Shoko Takayasu/Bloomberg , Bloomberg

(Bloomberg) -- KKR & Co. plans to acquire about 90% of Hitachi Ltd.’s transportation unit for more than 600 billion yen ($4.7 billion), including much of Hitachi’s 40% stake, Nikkei reported on Thursday without citing where it got the information.

The private equity firm has been named the preferred bidder to buy Hitachi’s stake, according to the report. Hitachi will reduce its stake in the unit, Hitachi Transport System Ltd., to 10%, Nikkei reported. KKR will launch a tender offer once the agreement is reached with Hitachi, and plans to take the unit private, Nikkei said.

The companies plan to reach an agreement by April 28, when the preferential bidding rights will expire, according to the report.

Japanese industrial conglomerate Hitachi has been overhauling its portfolio of assets, which extends from kitchen appliances to power grids, as part of its efforts to focus on its higher-margin digitalization business. In January, it announced plans to sell about half of its stake in its construction machinery unit to a group including Itochu Corp. for 182.5 billion yen ($1.4 billion).

Bloomberg previously reported that buyout firms including KKR, Bain Capital and Baring Private Equity Asia were among the shortlisted bidders for Hitachi Transport.

Founded in 1950, Hitachi Transport’s logistics services include heavy equipment and business relocation as well as air and ocean freight and cross-border transport, according to its website.

(Updates to add detail on company. An earlier version corrected a reference to the size of the stake in the first paragraph.)