Hitachi Koki Co., Ltd. (E01745) Stock Price

Hitachi Koki is a manufacturer and seller of power tools as its core business, handling a wide range of products from metalworking and woodworking tools such as drills and impact drivers to large-scale tools used on construction sites. The company is a global enterprise with 75 subsidiaries domestically and internationally, with manufacturing and sales operations established worldwide.

The company's products are primarily sold to professional users in the construction and manufacturing industries. In Japan, products reach customers through sales subsidiaries and authorized dealers, while overseas, local sales subsidiaries distribute through trading companies and agents. The majority of revenue comes from the power tools business, with a revenue structure that secures continuous sales not only from tool units themselves but also from consumables and accessories such as diamond tools.

The company's business consists of two segments: power tools and life science equipment. The power tools segment encompasses a wide range of products from basic metalworking and woodworking tools to pneumatic tools such as nail guns and laser measuring devices. The life science equipment segment manufactures ultracentrifuges and refrigerated centrifuges for research institutions. The company operates manufacturing and sales bases in Asia, North America, and Europe, developing products and executing market strategies tailored to regional characteristics.

Hitachi Koki has entered a new growth stage under KKR ownership and is pursuing an aggressive strategy to achieve its fiscal 2018 medium-term management plan. Building on approximately 70 years of track record within the Hitachi Group, the company aims to secure a leadership position in the global power tools market. Operating performance has improved through fundamental structural reforms and operational efficiency gains, and the company continues to pursue new challenges under the philosophy of "independent innovation" to accelerate further growth.

In priority investment areas, the company is focusing on developing innovative, competitively differentiated products and advancing differentiation strategies through technological innovation. Leveraging its core technical capabilities developed through the creation of high-performance, high-quality power tools and centrifuges, the company establishes competitive advantage in the market by providing products and services tailored to user needs. The company is also pursuing environmentally compatible product development to build a sustainable growth foundation.

In new market development, a strategic partnership with Lowe's, a major North American home improvement retailer, is a key initiative. By maximizing synergies with Metabo, a German subsidiary acquired last year, the company is strengthening its European market presence and aims to enhance its global market presence. Through these efforts, the company is accelerating its transformation from a Japan-centric business to a truly global enterprise.

Through its partnership with KKR, the company now has access to the resources and networks of one of the world's leading asset management firms with over 40 years of investment experience. By combining KKR's M&A support capabilities and financial strength with the company's technological development capabilities, the company is strengthening competitiveness in the power tools and centrifuge industries and pursuing sustainable growth in this new stage.