Power tool maker Makita announced Tuesday that it plans to acquire the power tool business of fellow Japanese manufacturer Panasonic.
Panasonic created a new division, known as Electric Works Company, to house its power tool business prior to the sale. Under the agreement, Panasonic will transfer all shares of the power tool business to Electric Works, then transfer those shares to Makita Corporation.
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Pending regulatory approval, Makita will acquire all product development, manufacturing and sales of Panasonic’s power tool products business, including factory and construction fastening equipment and factory‑related IoT solutions. The segment includes some 31,000 employees.
Transaction details were not disclosed.
Panasonic has been in the power tools business since 1979 and launched Japan’s first cordless power tool that year. The company is also responsible for the first impact driver equipped with a brushless motor in 2004, an impact driver with a torque control function in 2008, and a torque measurement impact wrench in 2021. In recent years, the business has focused on the electrical construction market while expanding into the assembly and manufacturing market.
Panasonic said it is making the move to focus on its electrical equipment and digital technologies businesses. The company said it faced challenges making investments at the scale and speed required to grow the power tools unit. The company said it believes the best way to accelerate growth is to combine Makita’s operational capabilities with the combined technological prowess of Panasonic and Makita.
Founded in 1938, Makita now has some 17,000 employees. The company said that it has been developing its business globally, with a focus on the construction and building markets, but that it needs to maintain sustainable growth going forward.
Makita said it was drawn to Panasonic’s capabilities in the factory fastening equipment field, particularly for its advanced torque control technologies and IoT‑enabled data management solutions. By combining Makita’s battery and motor technologies with Panasonic’s fastening and IoT technologies, Makita believes it can enter the factory‑oriented market in a full‑scale manner and create highly valued‑added solutions.
“Panasonic’s decision to transfer its power tools business to the Makita Corporation was not a reflection of the business or quality of our products and manufacturing,” said a Panasonic spokesperson in a statement to Industrial Equipment News (IEN). “We anticipate that Makita will strive to uphold the same standards of quality, reliability and customer support that Panasonic has provided.”
