This Power Tool Brand Is Now Owned By Makita

Makita Corporation is taking ownership of a major tool brand. The deal, announced on March 31, calls for Makita to take control of operations for the Electric Works Company of Panasonic Corporation. It's both a major consolidation and a major strategic move for both companies. Makita will head the unit's development, manufacturing, and sales operations, which include its factory and construction fastening equipment as well as its related IoT solutions. While the transaction still has to go through the standard regulatory approvals, it's still expected to close during the 2026 fiscal year.

Under the agreement, Panasonic will first transfer its power tool operations into a newly established entity within its Electric Works Company. From there, Panasonic will transfer all shares of that business to Makita. It's not unlike what Panasonic did with its TV manufacturing. The acquisition also includes the workforce of about 31,000 employees, not to mention decades of engineering advancements. Makita already has about 17,000 employees of its own.

The financial terms of the deal were not disclosed, but it had to have been massive. For context, Makita reported roughly ¥753.1 billion in revenue (approximately $4.735 billion) for the fiscal year ending March 2025. Panasonic's power tools segment brought in more than ¥1 trillion (approximately $6.287 billion) in the same period.

Speaking with Industrial Equipment News, Panasonic execs said their decision to leave the power tools business in Makita's hands will allow them to focus more on electrical equipment and digital technologies. To keep competing in the power tools sector, Panasonic just didn't think they had the money, the speed, or the scale to make it happen. That's where Makita comes in. Post-deal, Panasonic is hopeful its power tools unit will grow much better under a company already succeeding in the sector.

Makita believes the acquisition of Panasonic's power tool division should speed up its long-term growth strategy. It's not hard to see why. Panasonic has a lot of strength in precision fastening equipment, especially in advanced torque control and integrated data tracking. Those capabilities, combined with Makita's battery types and motor technologies, are going to allow them to create new high-value solutions for industrial production settings.