The Longreach Group said on Wednesday it is buying a unit of Hitachi and will help the precision drilling company expand in Asia.
The deal is a rare case of one of Japan’s sprawling conglomerates trusting a private equity firm enough to sell them a subsidiary.
Large global private equity firms such as KKR have opened in Japan in the hopes that they could buy such businesses, which are in many cases inefficient and starved of resources by the respective umbrella company. Many of them trade below book value.
“Japan is the largest restructuring opportunity that our industry is ever likely to contemplate,” said...