Media Center

March 22, 2017

KKR Completes Tender Offer for Hitachi Koki

TOKYO--(BUSINESS WIRE)-- Global investment firm KKR and leading power tool and life science equipment manufacturer Hitachi Koki Co., Ltd. ("Hitachi Koki" or the "Company") today announced the completion of a tender offer by HK Holdings Co., Ltd. (the "Offeror"), an entity owned by KKR investment funds, for all the existing common shares and stock acquisition rights of Hitachi Koki. Approximately 89.79% of the existing common shares and stock acquisition rights have been tendered through the tender offer and will be acquired by the Offeror. In the tender offer, Hitachi, Ltd., Hitachi Koki's largest shareholder, tendered its approximate 40.25% holding of Hitachi Koki common shares and Hitachi Urban Investment, Ltd. tendered its approximate 10.90% holding of Hitachi Koki common shares. After the acquisition of the tendered shares, the Offeror will implement a series of procedures to acquire the remaining common shares, such that Hitachi Koki will become a wholly-owned subsidiary of the Offeror.

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Hitachi Koki is a leading supplier of high-performance, high-quality power tools and life science equipment, competing in the global marketplace to introduce cordless technology to a wider range of power tool products and applications. The Company is actively pursuing expansion in global markets and acquired German power tool company metabo Aktiengesellschaft in March 2016. The Company also formed a strategic alliance with major North American hardware chain Lowe's Companies, Inc. in 2015.

Mr. Osami Maehara, President & Representative Executive officer of Hitachi Koki Co., Ltd., said, "We welcome KKR as a world‐class investor to support Hitachi Koki's growth as an independent company. KKR has a great track record of helping Japanese companies enhance their innovation and scope as a stand-alone business, and we look forward to capturing new opportunities in the global power tools industry alongside KKR's team globally and in Japan."

Mr. Hiro Hirano, Member of KKR and CEO of KKR Japan, said, "We are delighted to have successfully completed this transaction and are extremely excited to work with Hitachi Koki to explore growth opportunities and build on its success as a globally recognized and trusted brand in the power tools industry. Through the combination of Hitachi Koki's strengths in technological development and KKR's global network and management expertise, I am confident we can accelerate Hitachi Koki's growth strategy and further improve customer value."

KKR makes its investment predominantly from its Asian II Fund.

About Hitachi Koki

Hitachi Koki is a global manufacturer and supplier of power tools and life science instruments for the professional market. Its fundamental management principle is to contribute to society by providing sophisticated, high quality products and services with a high degree of customer satisfaction. Hitachi Koki generates 77%1 of its sales and manufactures 93%2 of its products outside Japan.

1 Q3 FY2016 results (cumulative)
2 Unit basis

About KKR

KKR is a leading global investment firm that manages investments across multiple asset classes including private equity, energy, infrastructure, real estate, credit and hedge funds. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world‐class people, and driving growth and value creation at the asset level. KKR invests its own capital alongside its partners' capital and brings opportunities to others through its capital markets business. References to KKR's investments may include the activities of its sponsored funds. For additional information about KKR & Co. L.P. (NYSE:KKR), please visit KKR's website at and on Twitter @KKR_Co.

Hitachi Koki
Public Relations Strategy Office
KKR Asia Pacific
Anita Davis, +852 3602-7335
KKR New York
Kristi Huller, +1 212-230-9722
For KKR Japan
Ashton Consulting
John Sunley, +81-3-5425-7220
Brendan Jennings, +81-3-5425-7220

Source: KKR & Co. L.P.

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