Financial terms of the deal were not immediately available.
Elettra's current employees will operate the business, which will be renamed Toshiba Industrial Products Canada and relocate its manufacturing to a larger, recently renovated plant in Hamilton, the companies said Thursday.
Toshiba International of Houston is an 1,800-employee subsidiary of Japanese conglomerate Toshiba Corp..
Elettra makes industrial motors and generators as well specialized motors for harsh conditions.
The Canadian company was founded in 1996 by two former Hamilton-based employees of Westinghouse Motor Co., Carlo Di Pietro and Joe Aiello.
Di Pietro, who is ETI's president, said the deal is good for both companies.
"ETI has a history of excellence in one-off specialty electrical motor production which will enhance Toshiba's product line, while Toshiba has the efficiencies of a large operation that will improve opportunities here," Di Pietro said in a statement.
Mike Ayers, a senior vice-president of Toshiba International and general manager of its industrial division, said that the deal will "better serve both ETI’s and Toshiba’s customers.”