Global investment firm KKR concluded on November 19 its cash tender offer for the common shares of Japanese third-party logistics (3PL) provider Hitachi Transport System (HTS) through HTSK, a special purpose entity owned by investment funds managed by KKR.
The offer will be financed predominantly from KKR’s Asia IV Fund. Approximately 51.11% of the common shares have been tendered and will be acquired by HTSK, with settlement of the offer commencing on December 6.
HTSK will, in addition to the shares acquired during the tender offer, acquire the remaining shares of HTS through a squeeze-out process, which, combined with a buyback by HTS of the shares held by Hitachi, will result in HTSK owning 100% of HTS’ shares.
HTS provides supply-chain solutions for customers that outsource logistics functions, such as logistics system integration, inventory and order control, logistics centre operations, factory logistics and transportation and delivery services.
The company, which will be renamed LOGISTEED from April 1 2023, has strong domestic and international 3PL business, including forwarding.
“Now more than ever, 3PL is vital to the trade flows and the global economy,” says Hiro Hirano, co-head of private equity for KKR Asia-Pacific and CEO of KKR Japan. “Our goal is to help HTS grow its business through increasing its innovative supply-chain solutions for its clients and business partners around the world.”