<article>U.S. buyout firm <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=KKR" target="_blank" rel="noopener noreferrer">KKR</a> said on Wednesday it has agreed to buy <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Hitachi+Ltd" target="_blank" rel="noopener noreferrer">Hitachi Ltd</a>&#8216;s chip-making equipment and video solution unit in a deal valuing the company at 257 billion yen ($2.3 billion), its second purchase of a Hitachi unit.</article>

U.S. buyout firm <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=KKR" target="_blank" rel="noopener noreferrer">KKR</a> said on Wednesday it has agreed to buy <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Hitachi+Ltd" target="_blank" rel="noopener noreferrer">Hitachi Ltd</a>&#8216;s chip-making equipment and video solution unit in a deal valuing the company at 257 billion yen ($2.3 billion), its second purchase of a Hitachi unit.
After completing the acquisition of <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Hitachi+Kokusai+Electric" target="_blank" rel="noopener noreferrer">Hitachi Kokusai Electric</a>, KKR will spin off the chip-making equipment unit, retaining 100 percent ownership of that business.
It will sell a 40 per cent stake in the video solutions business to Hitachi and a Japanese investment fund, Japan Industrial Partners Inc (JIP).
This is KKR&#8217;s second acquisition of a business owned by Hitachi, following its purchase of power-tool unit Hitachi Koki Co for about 150 billion yen ($1.35 billion) in January. Hitachi is reorganizing its business structure.
KKR has been taking advantage of Japanese conglomerates&#8217; need to streamline their businesses. KKR last year also bought an auto parts maker backed by Nissan Motor Co for about 500 billion yen ($4.5 billion) as Nissan is shifting its focus to new technologies.
In the latest deal with Hitachi, KKR initially plans to buy a 48.33 percent stake of Hitachi Kokusai at 2,503 yen per share for 124 billion yen ($1.1 billion) through a tender offer.
Separately Hitachi Kokusai will buy a 51.67 percent stake of its own shares held by Hitachi at 1,710 yen a share from Hitachi to cancel the shares.
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Reuters

KKR has agreed to buy Hitachi Ltd's chip-making equipment and video solution unit in a deal valuing the company at 257 billion yen ($2.3 billion).

KKR to buy Hitachi unit valued at $2.3b

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KKR to buy Hitachi unit valued at $2.3b

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