Tokyo, Japan 1/13/17; Tokyo, Japan 1/13/17—Investment firm KKR has announced an agreement to acquire Hitachi Koki from Hitachi for a total of $1.28 billion, a 90% premium to the stock’s 12-month average closing price to October 4, 2017. Hitachi Koki provides life science equipment and power tool products. A tender offer will run from January 30 to March 22 for Hitachi’s 43% holding of outstanding shares in the company. In addition, shareholders will receive a special dividend on ¥580 per common share ($5.04 = ¥115.0 = $1). Hitachi stated that it decided to sell the power tools business due to intensified worldwide competition.

Hitachi Koki’s life science equipment business consists of laboratory centrifuge and ultracentrifuges. The company is one of the largest suppliers of lab centrifuges. KKR’s other recent investments in the laboratory product market include its 2015 purchase of life science firm LGC (see IBO 12/15/15) and its purchase of Panasonic Healthcare (see IBO 10/15/13), whose offerings include lab freezers and incubators.