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ToolGuyd > News > Breaking Power Tool News: Hitachi Acquires Metabo!
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Breaking Power Tool News: Hitachi Acquires Metabo!

Nov 16, 2015 Stuart 45 Comments

If you buy something through our links, ToolGuyd might earn an affiliate commission.

Hitachi Koki Co., the company that makes Hitachi power tools (among other things), has fully acquired 100% ownership of Metabo and all that they do.

Is your mouth gaping at this news? Because mine sure is.

There aren’t many details worth repeating, as you can read the full nitty gritty in Hitachi’s press release. I also received a metabo press release, through an unofficial source, and although it says that Hitachi took over Metabo, the agreement seems to be more of a partnership.

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The deal isn’t finalized, as antitrust authorities still need approve the acquisition.

In 2014, Hitachi generated more than EUR 1 billion in revenue, and Metabo EUR 374 million. At the time of this posting. 1 EUR = $1.07 USD.

In one of last month’s misc. tool news posts, I wrote how my first experiences with Metabo tools are changing everything I thought I knew about the brand.

I have been impressed with Hitachi in the past as well, and some of their recent developments such as their Bluetooth radio, and 18V brushless angle grinder, are showing some nice innovations.

Let’s also not forget that Hitachi and Lowes announced an exclusive partnership earlier this year.

A reader recently emailed in with news that his brother found Metabo tools stocked at a Virginia Lowes location (thanks, Drew!). That is probably a random or isolated occurrence, but can you imagine what Hitachi’s ownership of Metabo will mean when you take into account their distribution and in-store promotion arrangement with Lowes?

Only time will tell what comes from this acquisition, but for now, the wheels of change have been set in motion. I for one am thrilled at the prospects.

Related posts:

Hitachi Triple Anvil Impact Driver BannerHitachi Power Tools and Metabo Bought by USA-Based KKR Private Equity Firm Metabo Angle Grinder RecallMetabo Rat Tail Braking Angle Grinder Recall Nailer with Metabo HPT logoHitachi Power Tools is Now Metabo HPT Metabo Tools LogoMetabo: We’re Not Affected by Hitachi Power Tool’s Name Change to Metabo HPT – But is it True?

Sections: News More from: Hitachi, Metabo

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45 Comments

  1. Bigjon says

    Nov 16, 2015 at 8:27 am

    My local Lowes in Maryland also has a Metabo end cap right now. All cordless, including a cordless miter saw.

    Reply
    • Jason says

      Nov 16, 2015 at 8:37 am

      I heard rumors about that too that Metabo was moving into Lowes. Also Metabo has been pushing more reviews and pr lately they tried to do it a few years ago, but limited distribution kinda killed any chance of momentum. I saw a video of a cordless Metabo table saw.

      Reply
    • Derek says

      Nov 16, 2015 at 8:49 am

      Was just in a Lowes in Virginia that had a Metabo endcap as well. Wasn’t there 2 weeks ago.

      Reply
    • Toolfreak says

      Nov 16, 2015 at 4:12 pm

      Awesome. I’d really like to see Metabo tools in Lowe’s nationwide.

      Reply
  2. Jason says

    Nov 16, 2015 at 8:40 am

    That is some pretty crazy news. I heard rumors about a month or a little longer that Metabo was moving into Lowes. I think everyone will admit even Lowes that they are getting killed by tool sales at Home Depot with HD locking down Milwaukee and Makita as exclusive brands it really killed tool selection at Lowes. If they do want to have Metabo take off at Lowes they need to run some killer promotions of free bare tools and batteries

    Reply
  3. Matt says

    Nov 16, 2015 at 9:08 am

    Wow

    Reply
  4. Travis says

    Nov 16, 2015 at 9:34 am

    I was just in my local Lowes here in Jacksonville, FL and there was a new Metabo end cap with all their cordless tools including the miter saw!

    I have the DeWalt cordless miter but that Metabo sure does look nice.

    Reply
  5. Chris Fyfe says

    Nov 16, 2015 at 9:45 am

    As long as the quality , and engineering is still there , could be good . I got off the Metabo bandwagon , due to lack of parts availability , and batteries cost a fortune . Never mind long lead times.

    Chris

    Reply
  6. Benjamen says

    Nov 16, 2015 at 10:11 am

    I can’t share Stuart’s optimism. Right now we have a ton of competitors in the market which is driving more innovation and prices down.

    Just look at the drug industry, there used to be a ton of different manufacturers, but through consolidations now there are only a few large ones. Many drugs are no only single source and prices are jumping. It allows companies to think they can jack up prices 500% on drugs like Daraprim.

    Imagine how much worse the mobile service market would look like if they let AT&T buy T-Mobile.

    Yes it’s just one merger, and sure maybe Hitatchi and Metabo could have some “synergy” and better product might come out of it, and maybe Matabo will get more shelf space in the short term. But this worries me that this might be the start of a consolidation cycle in the power tool market. I hope I’m wrong.

    Reply
    • Drew M says

      Nov 16, 2015 at 10:20 am

      I was doing some googling recently trying to figure out just who owns who these days but I wasn’t really able to find anything. I’d love to see a simple chart. I didn’t even know that Bosch owned both Dremel and Freud until a few days ago.

      Reply
      • Mrs. ToolGuyd says

        Nov 16, 2015 at 10:59 am

        Here you go: https://toolguyd.com/tool-brands-corporate-affiliations/

        Reply
        • Drew M says

          Nov 16, 2015 at 11:47 am

          Wow. How did I miss that? Almost makes me want to cry.

          Reply
    • Stuart says

      Nov 16, 2015 at 11:59 am

      As far as I am aware, going by the acquisition is described, the brands would remain separate and distinct.

      Milwaukee Tool owns Empire Level, but you wouldn’t know it just by shopping for the tools.

      I think that the acquisition is more about Hitachi being able to cover wider markets, and not a consolidation of any kind.

      Disney owns Marvel and Star Wars franchises, but this would never be obvious if you look at Mickey Mouse, Wolverine, Iron Man, Yoda, and Darth Vader.

      If the tools brands are blended, that would indeed be a big disappointment.

      Reply
      • Shane says

        Nov 20, 2015 at 5:01 pm

        You’ve clearly never mean to DisneyWorld/Land and seen the souvenir shops.

        Micky as R2D2, Mickey as Spiderman, Mickey as Yoda, Minnie as Princess, Micky as Hulk, etc, etc, etc, etc.

        Reply
    • will says

      Nov 16, 2015 at 2:58 pm

      I think they started consolidating years ago with Stanley black and decker and now TTI.

      Reply
    • Mike says

      Nov 16, 2015 at 6:33 pm

      I don’t think tool markets and industrial sector generally are particularly comparable to pharma and telecommunications. Those two sectors are literally the textbook examples of anti-competition practices, government subsidy and patent monopoly abuse. Pharma for example, is able to avoid the primary expenditure in their business(R & D), since Uncle Sam(NIH and others) provide at least 60% of the research in medicine. Pharma then tidily packages that research into marketable products, with literally NO competition for at least ten years(soon to be 15-20) propped up by viciously enforced patent monopolies. These practices can be so extreme that they are hard to believe. Example: someone “discovers” a new medicine in Amazonia, some root or leaf or tea that local Indians have been using since pre-Colombian times…kindly thanks the Indians for the tip and returns to New York or Hartford or whatever, files patents…then promptly sues the shit out of same tribe—becoming new owners of some prime South American terra full of (insert valuable natural resource here).

      Telecommunications are even worse…they are THE reason for anti-trust laws. They utilize technology developed almost exclusively by the State Dept and DoD. They also utilize key infrastructure developed and paid for by the government. To this day the original trans-atlantic fiber optic cable installed by the guys with tanks is used by all of us for our fancy internet. As well as US Navy nuclear subs that hover over the ocean floor to collect all the data that passes through. It’s magic, in the sense it’s all done with smoke and mirrors. We have yet to come up with an effective remedy for the tendency of telecom to merge into one big megafirm. US media market 90% owned by six corporations. Just thirty years ago it was more like 27 companies, and people thought THAT was far too much concentration of ownership. Little secret is the CIA/Pentagon have a roughly 15% ownership stake in every media company. Of course the CIA doesn’t exist, and therefore can’t own anything, or do any wrong for that matter.

      As far as this tool deal, it would be foolish to buy Metabo just to dilute the brand. Hitachi has been trying for years to get a bigger slice of the mid-to-high end tool markets. Now they did just that. From Porter-Cable to the best DeWALT, the tool giants just got a whole new headache.

      I predict the ‘worst’ thing that MIGHT happen is Metabo tools may be assembled in a country other than Germany(where 90%+ currently come from), possibly Japan, USA, or Taiwan. I assume if this does happen they will start to include Festool level service post-sale, since a huuuge part of Metabo’s appeal and image is the German COO. I expect some cross-pollination; better distribution for Metabo, access to better battery technology(licenses) and quick-chuck drill designs for Hitachi. Who knows? Japanese businesses are a distinct culture arising from the ancient clans of the Samurai days. They have some pretty effective corporate ideas and methods of refining practices and materials. Much like the ‘rice burners’ utterly disrupted 1970’s and 80’s US auto markets, Hitachi/Metabo may do the same by launching the first real cross-platform battery tech. We shall see. You can do a lot with ten billion dollars in annual total revenues.

      Hai!!!

      Reply
  7. Marks says

    Nov 16, 2015 at 10:32 am

    Aren’t some Metabo cut wheels still USA made? Assuming they aren’t re branded as I guess that is past tense as I doubt that will the case much longer. Now that is a real shame, but thankfully United Abrasives still is another option for now….

    Drew, some time ago Stuart made a chart here listing who owns who.

    Reply
    • magic says

      Nov 16, 2015 at 11:29 am

      The .040 slicers are made here.

      Norton does make a few wheels here. (Charger/Blue Fire and up [NorZon])

      Can always hope they don’t send em to Thailand or China.

      Reply
  8. will says

    Nov 16, 2015 at 10:40 am

    I’m sorry but if they make too many big changes and move a most of production to asia than Metabo as a company will not be the Metabo of today.

    Reply
  9. fred says

    Nov 16, 2015 at 10:49 am

    Time will tell (as it always does) – but its probably good for Metabo – in that it provides a wider distribution channel. Maybe its good for Lowes too – but I don’t know how well high-end tools will sell at Lowes. Their website already lists tools like the RBE12-180 that they have competitively priced at $849 – which is a lot cheaper than the Fein RS12-70E-PS that we used.

    Reply
    • Mike says

      Nov 16, 2015 at 6:43 pm

      Lowes suffers from identity and image issues. They can’t decide if they want to be viewed as a (slightly)more boutique hardware/appliance/home improvement center or as some K-Mart mutant with the latest in ten dollar 49-n-1 wrench/saw/reading lamp. Not an enviable position to be in-going toe to toe with Home Depot. As an electrician by training, I got the hint from Lowes loud and clear: my kind is not wanted there. Though Home Depot more or less has a similar policy, one that becomes truer with every day that passes.

      Reply
      • Stuart says

        Nov 16, 2015 at 7:35 pm

        Home centers do a lot of business with professional users. It’s surprising that they would turn you away.

        Reply
        • Mike says

          Nov 16, 2015 at 9:51 pm

          I was alluding to their awesome magic trick where they made all the Knipex(to name just one brand) go away. I like Southwire just fine for, well, wire…but their tools, while OK-ish, are not worth the prices that accompany them. In many cases the Southwire tools are actually slightly MORE expensive than equivalent Knipex or Kleins. Sorry about that, I can be a little bit way too obscure.

          Reply
  10. Nathan says

    Nov 16, 2015 at 10:58 am

    I’ve never been that impressed with Metabo tools – other than they made a few things in the larger capability/sizes markets that had a short list of competitors anyway. (Thinking like larger SDS stuff)

    Surprised they weren’t already part of Bosch or the parent of Festool. Other than some new Hitachi tools – I don’t see much changing other than bigger footprint and more use of the Metabo name. I wonder what limitations the EU government put into place on the merger?

    Who Owns Fein and Festool?

    Reply
    • magic says

      Nov 16, 2015 at 11:31 am

      I think Fein is Fein. Just bought Jancy Engineering a year or two ago. Painted their mag drills orange, but kept em USA made, so far.

      Reply
      • likasumboodi says

        Nov 17, 2015 at 6:26 pm

        festool owns fein 2015

        Reply
        • Steve Austin says

          May 25, 2016 at 8:26 am

          No,Fein is owned by Fein.

          Reply
    • fred says

      Nov 16, 2015 at 12:32 pm

      I believe that Festool GMBH is a subsidiary of TTS (ToolTechnic Systems) a German holding company that also owns Protool (which has been merged into Festool) and Narex

      Reply
      • fred says

        Nov 16, 2015 at 12:44 pm

        I forgot Tanos – which also seems to be under the TTS umbrella

        Reply
    • Tjorven says

      Nov 17, 2015 at 1:50 pm

      Actually, Bosch tried to purchase Metabo some years ago, but was early denied by the german antitrust authorities …….

      Reply
      • bluegreen says

        Nov 30, 2015 at 12:23 pm

        If Bosch had purchased the Metabo , it would have been the worst option.
        Metabo makes many tools better than bosch, quality control , design.

        Bosch has lowered their quality on so many of their power tools and bad choices in the manufacture and design.

        Reply
    • Steve Austin says

      May 25, 2016 at 8:24 am

      Fein is owned by Fein.
      Festool is owned by Festool.
      Some family relations between the two.
      Fein is the oldest power tool company formed in 1867. First drill in 1895.
      How long they can carry on as independents, who knows.

      Reply
  11. Diplomatic Immunity says

    Nov 16, 2015 at 12:11 pm

    Wow this is big news. Hitachi definitely has the ability to get Metabo’s tools out there especially if they get in at Lowe’s for distribution. Hopefully they don’t flush the name and quality downhill.

    Not really sure how I feel about this. Some of Metabo’s appeal was the fact that they could do things their own way being a smaller company. Reminds me of Audi buying Porsche.

    Reply
  12. Nigel says

    Nov 16, 2015 at 4:05 pm

    I did a search on Lowes web site for metabo and got 47 hits plus “View Demo” and “Shop Now” in the graphic at the top of the page.
    I will have to check the Ithaca, NY Lowes later – web site says there isn’t any in store for several Central NY state stores that I changed to.

    The SDS corded rotary hammers are 3 mode – drill, hammer/drill, hammer only.
    Too bad the Metabo 6-in 10-Amp Sliding Switch Corded Angle Grinder is so expensive. For power wood carvers using the King Arthur wood carving tools it would be great, or very dangerous.

    Reply
  13. Ed says

    Nov 16, 2015 at 5:59 pm

    I can’t see metabo products selling well at Lowes with their product line and price point. Most of their tools are more specialty items.

    Reply
  14. Nathan York says

    Nov 16, 2015 at 11:38 pm

    Home Depot tried selling Hilti tools a few years ago. I think the higher price point didn’t take well with consumers hence no more Hilti at HD. I think Metabo will be the same way at Lowes.

    Reply
    • Stuart says

      Nov 17, 2015 at 12:24 am

      One contractor I spoke to recently is convinced that the Hilti tools at Home Depot were lesser quality tools. He did not have a positive experience with his purchase, or its replacement, and swore off Hilti ever since.

      Reply
      • Will says

        Nov 26, 2015 at 3:06 am

        I was told that Milwaukee sells power tools of lesser quality at HD, and that “professional grade” Milwaukee tools can be bought at specialty industrial distributors. Any truth to that?

        Reply
        • Stuart says

          Nov 26, 2015 at 9:48 am

          Not that I know of.

          Reply
          • Adam says

            Jan 9, 2016 at 2:05 am

            The Australian equivalent of Home Depot does this with some brands, such as Makita. I once bought a Makita jigsaw from an independent retailer to find they put the wrong one in the box, it was a “Bunnings Warehouse special” with the pendulum function deleted.

            The famous Bunnings boast is that “if you find a lower price on an identical stocked item, we’ll beat it by 10%” so they make it their business to ensure that you won’t find an identical stocked item.

  15. voodooaw says

    Nov 17, 2015 at 1:07 am

    I have to say that the ugliest Japanese power tool brand acquires the ugliest German power tool brand. Can’t imagine the appearance of their future products.

    Reply
    • Greg says

      Nov 17, 2015 at 5:00 am

      I’ve always heard that ugly parents make cute babies… Ha ha

      Reply
  16. Ry. says

    Nov 17, 2015 at 1:41 pm

    The reason Hitachi acquires Metabo is because of the green color.

    Reply
  17. BikerDad says

    Nov 17, 2015 at 6:42 pm

    I, for one, from a tool afficianado’s standpoint, think this is not going to end well. The Metabo brand will be milked by Hitachi for a while, in much the same way as Stanley Black & Decker did to Porter-Cable, and with much the same results.

    Lower quality for a once storied brand.

    Almost anything that Lowe’s does “exclusively” turns to crap. Ever since they made a big push with Kobalt being American made, huzzah, and then a few years later offshored ALL of it, and not even good offshore stuff, I’ve been sour on Lowe’s from a tool perspective. If it weren’t for them carrying DeWalt and Bosch tools, there would be very little reason for me to ever enter their tool department.

    Perhaps the thrust of this is actually Hitachi attempting to raise it’s tool profile, production capacity and market share in Europe, and the American market is just a sideline. If so, then the deal makes more sense, and the probability of Metabo quality going down is reduced. Also keep in mind that there’s the consumer tool market, the tradesman market, and then the manufacturing market. I believe Hitachi is big in the last market in Japan, partnering with a German firm could certainly help them get into more European factories.

    Reply
  18. Eric says

    Dec 5, 2015 at 4:10 pm

    This is kind of sad, from a standpoint of the end of the age of individual nations and tools to a trend of global corporate mega merging. I think that the technology and initial functionality will increase and that the quality and longevity will decrease. We are in the age of high tech low quality throw away consumables. I like my Metabo corded angle grinder. I have some cheap Hitachi tools that work surprisingly well. As well as teal and red ones and a yellow sander. But maybe the merge of dark and light greens will be better than the individual demise of both?

    Reply

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