Panasonic on Monday announced the sale of its home equipment unit to YKK, a Japanese fasteners and fasteners giant, for an undisclosed sum.
Panasonic has decided to sell Panasonic’s low-profit housing solutions as part of its structural reform strategy. YKK, which already has a home equipment unit, intends to use the acquisition to expand its revenue sources.
Panasonic will retain 20% of the wholly owned subsidiary, while YKK will retain the remaining 80%.
Panasonic Housing Solutions, based in Osaka, makes products for kitchens and bathrooms, as well as frames, doors and flooring. The unit reported sales of about 480 billion yen ($3.1 billion) in the fiscal year ending in March, but did not disclose its operating profits. In March, the number of its employees reached about 11,000 employees.
The number of new residential buildings in Japan is trending downward, which is why YKK is focusing more on renovation and refurbishment work. YKK’s construction equipment business relies heavily on selling windows for new homes, so the company was seeking more diverse product lines.
Panasonic Holdings improves productivity and profitability. The company has continued its restructuring efforts, which include laying off 10,000 employees worldwide, or about 4% of the group’s workforce.
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