Panasonic Electric Works transfers power tools business to Makita
The transaction will be executed through a company split whereby the business will be transferred to the successor company, followed by the transfer of all issued shares of the successor company to the acquirer.
Electric Works Company, a division of Panasonic Corporation, has announced that it entered into a share transfer agreement to transfer its power tools business to a successor company newly established by the company, and subsequently to transfer all shares of that company to Makita Corporation (Makita).
The transaction will be executed through a company split whereby the business will be transferred to the successor company, followed by the transfer of all issued shares of the successor company to the acquirer. Assets, contracts, employees and other resources necessary for business operations will be transferred to the successor company, according to a press release.
In addition, certain manufacturing and sales functions related to the business, among those owned by Panasonic Group's overseas companies, will be transferred to Makita's subsidiaries.
Electric Works Company has determined that the optimal path to accelerate the growth of the power tools business is to combine Makita's operational capabilities — including its customer base, sales and service network, and diverse product portfolio — with the combined technological strengths of Makita and the company, the press release said.
Electric Works Company plans to complete the establishment of the successor company, the transfer of the business, and the share transfer procedures during fiscal year 2027 (ending March 31, 2027), with operations commencing under the new structure.
