KKR & Co. agreed to buy a majority stake in NVC Lighting Holding Ltd.'s China lighting business, or NVC China, for a total equity value of about US$794 million.

The global investment firm is making the acquisition out of its flagship KKR Asian Fund III.

In conjunction with the deal, KKR and NVC Lighting will form a joint venture that will own 100% of NVC China. The joint venture will be 70% owned by KKR, with NVC Lighting keeping the remaining 30% stake and receiving cash consideration. NVC Lighting will retain its international operations, as well as its non-lighting business in China and China ODM division. NVC Lighting's shareholders will keep a minority stake in NVC China.

NVC Lighting's board will declare a special dividend of not less than 90 Hong Kong cents per share, payable to its stockholders and subject to shareholder approval and closing of the deal with KKR.

The deal is scheduled to close during the fourth quarter, pending regulatory approval, shareholder approval and other customary conditions.

NVC China manufactures and supplies branded lighting products and provides lighting solutions to consumers and business clients across China. The company will leverage KKR's resources and operational expertise to help advance its long-term growth strategy, according to a news release.

Paul Weiss Rifkind Wharton & Garrison LLP, Fangda Partners and Kirkland & Ellis were the legal advisers to KKR. Freshfields Bruckhaus Deringer and Deloitte & Touche Corporate Finance Ltd. were the respective legal and financial advisers to NVC Lighting.