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Who Bought Hitachi Power Tools

by jingji42

Hitachi Power Tools has long been a respected name in the industry, known for producing reliable, high-performance tools favored by professionals and DIY enthusiasts alike. The company’s journey from its origins to its current status involves significant changes in ownership and branding that have shaped its position in the global market.

For over 70 years, Hitachi Power Tools built a reputation for innovation and quality. Their products became staples on job sites worldwide, with particular strengths in cordless technology, durability, and professional-grade performance. The company developed advanced manufacturing processes and maintained rigorous quality standards that set its tools apart from competitors.

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The Acquisition That Changed Everything

In 2017, a major shift occurred when KKR & Co., one of the world’s leading investment firms, acquired Hitachi Koki, the parent company of Hitachi Power Tools. This $1.3 billion deal marked a significant transition for the brand. KKR saw the potential in Hitachi’s established market presence and technological expertise, recognizing an opportunity to expand the business globally.

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The acquisition wasn’t just about changing ownership – it represented a strategic move to revitalize the brand. KKR brought fresh capital and business expertise to the table, enabling investments in research and development, manufacturing capabilities, and global distribution networks. This injection of resources helped maintain Hitachi’s tradition of quality while positioning the company for future growth.

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The Birth of HiKOKI

Following the acquisition, the company underwent a significant rebranding. In 2018, Hitachi Koki officially became HiKOKI, a name that reflects its Japanese heritage while signaling a new era for the brand. This change wasn’t merely cosmetic – it represented a complete transformation of the company’s identity and market strategy.

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The HiKOKI brand maintains the same commitment to quality that made Hitachi Power Tools successful, while introducing new innovations and expanding product lines. The rebranding allowed the company to differentiate itself in a competitive market and establish a distinct identity separate from its former parent corporation.

What the Change Means for Professionals

For tradespeople and contractors who relied on Hitachi tools, the transition raised important questions. Would the quality remain consistent? Would service and support continue at the same level? The answer, based on HiKOKI’s performance since the change, has been reassuring.

HiKOKI has maintained all the technical advantages that made Hitachi tools popular:

  • Advanced brushless motor technology
  • Durable construction for tough job site conditions
  • Ergonomic designs that reduce user fatigue
  • Industry-leading battery systems for cordless tools

The company has actually expanded its warranty coverage in many markets, demonstrating confidence in its products. Service networks have been maintained and in some cases expanded, ensuring professionals can get support when needed.

Innovation Under New Ownership

Since the acquisition, HiKOKI has accelerated its product development cycle, introducing several groundbreaking tools that push the boundaries of what’s possible in professional power equipment. Some notable innovations include:

​MultiVolt System​​: A revolutionary battery platform that allows tools to operate on different voltage systems, providing unmatched flexibility.

​Active Torque Control​​: Advanced safety technology that detects dangerous kickback situations and stops the tool instantly.

​Enhanced Brushless Motors​​: More efficient, longer-lasting motors that deliver more power with less heat generation.

These innovations demonstrate how the new ownership has fostered continued technological advancement while staying true to the brand’s core values of reliability and performance.

Manufacturing and Quality Control

One concern with ownership changes is whether production standards might decline. HiKOKI has addressed this by maintaining and even upgrading its manufacturing facilities. The company operates advanced production plants in:

  • Japan (for high-end professional tools)
  • China (for volume production)
  • Germany (for European market specialization)
  • Malaysia (for regional distribution)

Quality control processes remain rigorous, with multiple inspection points throughout production. The company has actually increased its testing protocols, now using automated systems alongside human inspectors to ensure every tool meets exacting standards.

The Global Supply Chain Transformation

A significant post-acquisition achievement has been the overhaul of HiKOKI’s supply chain and service parts distribution. The company implemented advanced inventory management systems that:

  • Reduced overall network inventory by 34%
  • Increased availability of critical parts at central locations by 13%
  • Cut obsolete inventory by 65%
  • Improved order fulfillment times from months to weeks

These improvements mean professionals can get the parts and support they need faster than ever before, minimizing downtime on job sites.

Market Position and Competition

In the competitive power tool market, HiKOKI occupies a unique position. It’s not as large as industry giants like Milwaukee or DeWalt, but it maintains strong brand loyalty among professionals who value its specialized offerings. The company competes by:

  • Focusing on core professional tool categories
  • Offering superior ergonomics and user experience
  • Maintaining premium build quality
  • Providing excellent after-sales support

This strategy allows HiKOKI to carve out a profitable niche without engaging in price wars with mass-market competitors.

The Future of HiKOKI Power Tools

Looking ahead, HiKOKI appears positioned for continued growth. The company has announced plans to:

Expand its cordless tool lineup with more 36V and 18V options

Develop smarter tools with IoT connectivity for job site management

Grow its presence in emerging markets

Enhance its battery technology for longer runtime and faster charging

These initiatives suggest that the acquisition by KKR has given the company the resources and strategic direction to remain a significant player in the power tool industry for years to come.

Advice for Longtime Hitachi Tool Users

For professionals with investments in Hitachi-branded tools, the transition to HiKOKI has been designed to be seamless. Key points to remember:

  • All existing Hitachi tools remain fully supported
  • Batteries and accessories are cross-compatible with new HiKOKI tools
  • Warranty coverage continues as before
  • Service centers still handle all repairs

The rebranding hasn’t made existing tools obsolete – it’s simply opened new possibilities for future product development.

Conclusion

The acquisition of Hitachi Power Tools by KKR and its transformation into HiKOKI represents one of the most significant developments in recent power tool history. Rather than diminishing the brand, the change has injected new energy and resources into the company while preserving its core strengths.

For professionals, this means continued access to high-quality, innovative tools backed by strong service and support. The HiKOKI name may be new, but the commitment to excellence that made Hitachi Power Tools successful remains firmly in place. As the company continues to evolve under its new ownership, users can expect more advanced solutions that meet the ever-changing demands of modern construction and woodworking.

The story of who brought Hitachi Power Tools is ultimately one of successful transition – a case study in how strategic investment and thoughtful rebranding can preserve a company’s heritage while positioning it for future success in a competitive global market.

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