Textron Agrees to Acquire Leading Swedish Gear Manufacturer

27 October 1999

Textron Agrees to Acquire Leading Swedish Gear Manufacturer; Establishes Presence in Scandinavian Market and Extends Textron's Power Transmission Product Line

    PROVIDENCE, R.I.--Oct. 27, 1999--Textron Inc. announced today that it has agreed to acquire AB Benzlers, a wholly owned subsidiary of the Swedish multi-industry Atle Karolin Group. Headquartered in Helsingborg, Sweden, AB Benzlers is a leading manufacturer of mechanical power transmission products for the material handling, paper and food industries. Fiscal year 1998 revenues for the company were approximately $44 million. Textron and AB Benzlers anticipate the completion of the transaction by year-end 1999, subject to regulatory approvals and normal closing conditions. Terms of the agreement were not disclosed.
    AB Benzlers will become part of the Textron Power Transmission Products business within the Fluid and Power Systems Group. Textron Power Transmission Products includes the David Brown and Cone Drive units.
    "This acquisition will bring Textron one step closer to becoming a major player in the fluid and power systems markets. It will establish a strong presence for our Power Transmission business in Scandinavia and will enhance our distribution capability in the rest of Europe and Asia," said Textron Chairman and CEO Lewis B. Campbell.
    "Benzlers will add important products, particularly in shaft mounted gears and screw jacks which are currently not within our portfolio," added Textron Fluid & Power Systems President Bob Geckle.
    AB Benzlers produces worm, helical and shaft mounted gears, as well as geared motors and screw jacks at two manufacturing facilities in Sweden and Italy. These products are sold and distributed to the material handling, paper and food industries through 18 sales and distribution offices in Sweden (4), Denmark, Finland, Norway, Austria, Belgium, France, Germany, Italy, the Netherlands, the United Kingdom, Australia, Indonesia, Malaysia and Singapore.
    With approximately $1 billion in annualized revenues and over 100 locations worldwide, Textron's Fluid and Power Systems Group is a leading manufacturer of mechanical power transmission, motion control, fluid handling and electronic systems and components. The Fluid and Power Systems Group is part of Textron's $4.5 billion Industrial Segment.
    Textron Inc. is an $11 billion, global, multi-industry company with market-leading businesses in Aircraft, Automotive, Industrial and Finance. Textron has a workforce of over 65,000 employees and major manufacturing facilities in 27 countries. Textron is among Fortune magazine's "Global Most Admired Companies." Additional information is available at www.textron.com.