Textron to Acquire David Brown Group

Textron Inc. said it agreed to acquire British engineering firm David Brown Group for $431 million in cash and debt to expand its fluid and power systems group overseas. Providence, R.I.-based Textron, a conglomerate that makes Cessna jets and auto parts, last month sold its Avco Financial Services unit for $3.9 billion, providing it with $1.6 billion to fund acquisitions in the industrial segments. David Brown’s products are used in a wide range of applications, from industrial machinery such as conveyors to transportation applications such as rail traction gears. It has 72 facilities in 23 countries and has annual revenue of $400 million, which will boost sales in Textron’s fluid and power systems group to about $1 billion. A Textron spokeswoman said no job cuts are expected in David Brown’s work force of 3,250. Textron fell 63 cents to close at $61.88 on the NYSE.