Textron Completes Acquisition of David Brown Group plc

13 October 1998

Textron Completes Acquisition of David Brown Group plc; Adds Global Platform To Expand Fluid and Power Systems Business

    PROVIDENCE, R.I.--Oct. 13, 1998--Textron Inc. today announced it has completed the acquisition of David Brown Group plc of the U.K. (London Stock Exchange:DBG.L) for approximately $326 million (195 million pounds sterling), for the entire issued capital stock of Brown, plus the assumption of debt.
    "David Brown provides an important growth platform for our Industrial Segment," said Textron President and Chief Executive Officer Lewis B. Campbell. "With this acquisition, we now have the critical mass required to build and develop Textron's Fluid and Power Systems group into a $1 billion, global business positioned for further growth."
    "As we proceed with the integration process, we will gain significant operational synergies by leveraging the engineering, purchasing, manufacturing, marketing and distribution capabilities across the Fluid and Power Systems group," Campbell added.
    David Brown designs and manufactures industrial gears and mechanical and hydraulic transmission systems used in a wide range of applications -- from industrial machinery, such as conveyors, to transportation applications, such as rail traction gears. The company also manufactures industrial pumps for the oil, gas and petrochemical industries.
    Textron's Fluid and Power Systems group serves the aerospace, automotive, industrial and defense industries. The group's four businesses include Cone Drive Textron, makers of double-enveloping worm gear speed reducers, gear sets and gear motors; HR Textron, manufacturers of motion control components and systems; Maag Pump Systems Textron, producers of gear pumps and systems; and Textron Systems, developers of defense systems and advanced sensors.
    Headquartered in Huddersfield, England, David Brown Group plc has approximately 3,250 employees at 72 facilities in 23 countries including Australia, Canada, France, Germany, Indonesia, Japan, Thailand, U.K., U.S. and South Africa.
    Textron Inc. is a $10 billion, global, multi-industry company with market-leading operations in Aircraft, Automotive, Industrial and Finance.

    Note: Textron's offer for David Brown Group plc was declared wholly unconditional on October 7, 1998, with Textron having received acceptances for more than 90% of David Brown's issued share capital. The offer remains open for acceptance until further notice. Textron intends to apply the provisions under UK law to acquire compulsorily any outstanding David Brown shares.