YAMAHA's small engine division is expanding its reach in the generator, lawn and garden markets business with the acquisition of Subaru Industrial Power Products.
The deal, which is expected to be completed by October 2017, was reached between the Japanese parent companies, Yamaha Motor and Fuji Heavy Industries.
The deal followed Fuji's decision to stop producing Subaru multi-purpose engines by September 2017.
The deal will see Fuji transfer the technology relating to three multi-purpose engines in the EH Series of v-twin overhead valve range: the EH65, EH72 and EH65V to Yamaha.
The acquisition of the technology will enable Yamaha to sell the EH Series v-twin overhead valve multi-purpose engines in Japan and overseas.
Fuji will also transfer ownership of Subaru Industrial Power Products in the US to Yamaha which has indicated it is making the multi-purpose engine market a priority.
While Yamaha will provide after-sales service for the Subaru engines in North America, the status of Subaru power products in other countries is unknown.