Electric Works Company of Panasonic Corporation transfers its power tools business to Makita

Osaka, Japan, March 31, 2026 – Electric Works Company (the Company), a division of Panasonic Corporation, announces that it entered into a share transfer agreement on March 24 to transfer its power tools business (the Business) to a successor company newly established by the Company, and subsequently to transfer all shares of that company to Makita Corporation (Makita). Having completed the necessary preparations, the Company is announcing this today.

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. 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.

Since its establishment in 1979, the Company has been in the power tools business for more than 45 years. Starting with the launch of Japan's first cordless power tool in 1979, the company has contributed to revolutionizing professional work practices through its proprietary technologies, including 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 line market. The company has been developing power tool solutions globally across both markets, directly reducing operator workloads.

In order to enhance the competitiveness of the Business and achieve further growth amid continued market expansion, sustained investment and strengthening the global customer platform are essential. However, as the Company is focusing on its solutions business centered on electrical equipment and digital technologies, it faces challenges in making continued investments at the scale and speed required for the further growth of the Business. Under these circumstances, the Company has determined that the optimal path to accelerate the growth of the Business is to combine Makita's operational capabilities – including its globally industry-leading customer base, sales and service network, and diverse product portfolio – with the combined technological strengths of Makita and the Company. Accordingly, the Company has decided to divest the Business to Makita.

The 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.