Stock price of
Kohlberg Kravis Roberts & Co. L.P.
) appreciated by 2.7% since the company announced a definite
agreement with Qingdao Haier Co., Ltd on Monday to acquire 10%
stake in the latter. While Kohlberg Kravis is a private equity
investment firm, Qingdao Haier specializes in home appliances and
is a leader in the Chinese market for the same.
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Focused on meeting consumer demands and improving the product
mix, Qingdao Haier encourages innovations and effective
distribution systems. The company has witnessed sustainable
growth and is an attractive pick for private equity firms like
Kohlberg Kravis, with its 37-year market expertise will support
Qingdao Haier in boosting long-term growth and also help it to
gain exposure on the global front. This collaboration will see
the companies working together to achieve mutually beneficial
Further, last week, Kohlberg Kravis signed a share purchase and a
shareholders' agreement with Panasonic Corporation, which
sanctioned both the companies' joint ownership of Panasonic
Healthcare Co., Ltd. As per the deal, Kohlberg Kravis's wholly
owned company - PHC Holdings Co, Ltd. (PHCHD) - will buy all the
outstanding shares of Panasonic Healthcare worth $1.67 billion.
Further, through third-party allocation, PHC Holdings will
distribute 80% of the acquired stock to Kohlberg Kravis and the
remaining 20% to Panasonic.
Last month, Kohlberg Kravis reaffirmed its plan to buy software
company Mitchell International Inc. from Aurora Capital Group.
, the deal value could be around $1.1 billion (including debt).
The transaction is expected to close by fourth-quarter 2013.
In Aug 2013, Kohlberg Kravis announced an agreement to purchase
clinical research firm ReSearch Pharmaceutical Services Inc (RPS)
from N.Y.-based global private equity firm, Warburg Pincus.
Having ventured in 25 industries across the U.S. with an
investment of $470 billion, Kohlberg Kravis is now keen to
explore opportunities beyond the national borders. The company's
investment pattern brings forth the intention of expanding its
foothold not only globally but also across industries ranging
from software to healthcare.
Moreover, with sluggish economic recovery in the U.S, the booming
East Asian and South Asian economies appear to be attractive
markets for global investors.
Currently, Kohlberg Kravis carries a Zacks Rank #4 (Sell). Some
better-performing financial institutions include
GAMCO Investors, Inc.
Artisan Partners Asset Management Inc.
The Blackstone Group L.P.
). While GAMCO Investors and Artisan Partners Asset Management
carry a Zacks Rank #1 (Strong Buy), The Blackstone Group holds a
Zacks Rank #2 (Buy).