Makita is set for a transformational expansion.

The power tools maker announced March 31 that it has reached a deal to acquire the power tool business of Panasonic in a move that will net it approximately $7 billion in annual revenue and around 31,000 employees.

Panasonic established its Electric Works Company of Panasonic about a year ago to house that power tools unit.

Terms weren’t disclosed for the transaction, which will see Makita acquire Electric Works Company — which operates primarily in Japan — and its subsidiaries. It includes the development, manufacturing and sales of power tool products, including factory and construction fastening equipment and factory-related IoT solutions.

“As a comprehensive manufacturer of power tools, Makita has been developing its business globally, with a particular focus on the construction and building markets. To achieve sustainable growth going forward, it is essential not only to strengthen our existing businesses but also to secure new growth drivers,” Makita said in a news release.

The transaction is expected to close by March 2027.

For its fiscal 2026 that just ended on March 31, Makita posted revenue of $4.7 billion, while Panasonic’s power tools business had revenue of $7.1 billion during the same period.

Makita cited Panasonic’s power tools strength in factory fastening — particularly its advanced torque control technologies and IoT-enabled data management solutions — as attractive elements of the business.

“By combining Makita’s battery and motor technologies with the fastening and IoT technologies of the business, Makita aims to enter the factory‑oriented market in a full‑scale manner and create highly value‑added solutions,” the company added. “Through this integration, we seek to further enhance our corporate value.”

For Panasonic, the company said the move will enable it to focus on its core electrical equipment and digital technologies businesses after facing challenges to grow the power tools unit.