Textron to sell its fluid & power segment

Industrial Distribution staff -- Industrial Distribution, 9/12/2008 7:32:00 AM

Textron Inc. has agreed to sell four businesses that make up its fluid & power division to Clyde Blowers Ltd., a United Kingdom-based power, materials handling, logistics and pump technologies company.

The acquisition price was for $645 million. 

The fluid & power companies include two that are headquartered in England, David Brown Hydraulics and David Brown Gear Systems. The other two are Swiss-based Maag Pumps and Union Pumps, which is based in Michigan.

"This is a very positive move for both parties, as well as a great fit for our employees," said Lewis Campbell, chairman, president and CEO of Textron, which is based in Providence, R.I. “Clyde Blowers is gaining world-class operations with Textron's Fluid & Power group of companies.

The fluid & power division is part of Textron's industrial segment. The company expects it to generate about $675 million in revenues this year.

Clyde Blowers includes 42 companies located in 21 countries. It is owned by Scottish entrepreneur Jim McColl. The Textron deal is the investor’s the biggest purchase to date.

"I am absolutely delighted to sign a deal of this magnitude, especially in the current economic climate,” McColl told the UK’s Daily Telegraph. “It is a very substantial deal for a British company."