Textron Acquires Leading French Pump Manufacturer

6 December 1999

Textron Acquires Leading French Pump Manufacturer; KSB Annecy Extends Textron's Geographic and Product Reach in the Fluid Handling Industry

    PROVIDENCE, R.I.--Dec. 3, 1999--Textron Inc. announced today that it has acquired KSB Annecy SAS in France, a subsidiary of the German industrial pump manufacturer KSB group. Serving markets in Europe, Northern Africa and Asia, the acquisition complements Textron's line of pump systems for oil and gas applications. KSB Annecy's 1998 revenues were approximately $40 million. Terms of the transaction were not disclosed.
    "This acquisition represents an important product and geographic extension for Textron's Fluid and Power Systems Group, strengthening our position in vertical and large oil pipeline pumps in Europe, North Africa and Asia," said Textron Chairman and Chief Executive Officer Lewis B. Campbell.
    The acquired company's product line will be sold under the name David Brown Guinard Pumps, joining the other leading pump brands in the Textron Fluid Handling Products portfolio: David Brown, Union Pumps, LCI(R)(a) polymer products and Maag.
    "This acquisition provides additional manufacturing capacity for our existing product portfolio and adds a new line of multiphase subsea completion pumps, serving a market where we anticipate solid growth," said Textron Fluid and Power Systems President Bob Geckle. Multiphase subsea completion pumps are structures placed on the seabed rather than a platform and are capable of extracting oil at significant water depths that are not normally considered viable utilizing conventional pump systems.
    With one facility in Annecy, France, KSB Annecy designs and manufactures pumps for the oil and gas industry as well as safety-related pumps for nuclear power plants.
    Textron's acquisition of KSB Annecy follows KSB group's announced intention to withdraw from the worldwide oil extraction, transportation and refinery markets, with the exception of such markets in India and Brazil. In these two countries, KSB will provide distribution support for Textron products.
    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 and fluid handling products. The Fluid and Power Systems Group is part of Textron's $4.5 billion Industrial Segment.

    Textron Inc. is an $11.5 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.

    (a) LCI is a registered trademark of LCI Corporation International which is not affiliated with Textron Inc.