TOKYO (Reuters) - U.S. private equity firm KKR & Co LP KKR.N said on Friday it has agreed to buy Hitachi Ltd's 6501.T power tools unit, Hitachi Koki Co Ltd 6581.T, for about $1.3 billion, its second billion-dollar deal in Japan in three months.
KKR will pay 1,450 yen for Hitachi Koki’s stock, bringing the total deal size at 147.1 billion yen ($1.28 billion).
Hitachi Koki shares closed at 1,508 yen on Friday on the Tokyo Stock Exchange, valuing the company at 186 billion yen.
KKR is taking advantage of a push by Japanese conglomerates to restructure businesses by shedding non-core operations.
The sale of Hitachi Koki to KKR would enable Hitachi to focus on its main business segments such as infrastructure.
KKR would launch a tender offer on Jan. 30. The offer price consists of 870 yen per share price for a tender offer and a special dividend of 580 yen per share.
KKR said it would buy Hitachi Koki from its $6 billion Asian Fund ll, which it completed in 2013. The buyout firm is now in the process of raising around $7 billion for its next fund, according to people familiar with the plans.
Reporting by Junko Fujita, Chris Gallagher and Chang-Ran Kim; Editing by Christopher Cushing
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