Power tools maker Makita Corporation has launched a new subsidiary following the completion of its acquisition of Panasonic Electric Works’ power tools business.

Makita Industrial Tools Corporation began operations Sept. 1, the same day Makita and Panasonic completed the transaction announced earlier this year. The acquired business includes power tools, factory and construction fastening equipment and factory-oriented IoT solutions.

Panasonic had established a successor company, NEXRA Field Works Co. Ltd., in April and transferred the assets, contracts, employees and other resources needed to operate the power tools business into that company. Makita acquired all of its issued shares Sept. 1, after which the company was renamed Makita Industrial Tools Corporation.

Certain manufacturing and sales functions operated by Panasonic Group companies outside Japan were also transferred to Makita subsidiaries.

Makita said the new business broadens its reach beyond its traditional focus on power tools and outdoor power equipment for construction and building applications. The company plans to expand further into fastening equipment used in factories and construction, along with IoT solutions designed for manufacturing environments.

The company said it intends to combine its battery and motor technologies and global business platform with Panasonic Electric Works’ expertise in power tools, factory fastening and industrial IoT. Makita Industrial Tools will serve customers ranging from construction sites to manufacturing facilities.

Product and service delivery and customer support for the acquired business will continue under the existing framework for the time being.

Makita announced the Panasonic transaction in March, saying at the time that the acquisition would give it a stronger foothold in factory-oriented markets. Panasonic’s business brought advanced torque-control technology and IoT-enabled data management capabilities used in manufacturing applications. Terms of the transaction weren’t disclosed.

Panasonic said the divestiture allows it to focus more heavily on solutions centered around electrical equipment and digital technologies.