Engineering firm in £1bn US deal

A Scottish engineering group has bought an entire section of a top US firm in a £1bn deal.

Clyde Blowers has secured four pumping, gearing and hydraulics businesses from Textron, one of the world's largest multi-industry companies.

The acquisition was partly funded by private equity, the Bank of Scotland, Barclays, HSBC and RBS.

Clyde Blowers owner Jim McColl said the deal had taken a bit of work but proved the company's global pedigree.

The companies bought by Clyde Blowers were:

• Maag Pumps systems, based in Switzerland

• David Brown Gear Systems, based in Huddersfield, West Yorkshire

• David Brown Hydraulics, based in Poole, Dorset

• Union Pumps, based in Michigan, US.

Mr McColl said he was delighted to sign a deal of this magnitude, especially in the current economic climate.

He added: "I believe it is a great boost for British business.

"At a time when the news is all about foreign businesses coming to the UK and buying our biggest companies, here is a story of a British company having the clout to buy an entire division from a global company ranked 202nd in the American Fortune 500.

"It is remarkable, and testament to the growing strength of Clyde Blowers as a global company in our own right that we have been able to put together such a deal at this time."

'World-class'

Three of the four companies - Maag Pumps, David Brown Gear Systems and David Brown Hydraulics - will be separate portfolio companies within the Clyde Blowers group, taking the number of such organisations to seven - each with its own management structure.

The others are Clyde Process Solutions, Clyde Bergemann Power Group, InterBulk Group and Clyde Pumps.

Union Pumps will integrate with Clyde Pumps.

Across Clyde Blowers, they will help offer a range of pumps for the conventional power, nuclear power, oil and gas, water and industrial markets.

Lewis B Campbell, Textron's chairman, president and CEO, said: "Clyde Blowers is gaining world-class operations with Textron's Fluid & Power group of companies, including some of the most advanced technologies, respected brands and highly talented people in their respective industries, while we continue to strategically focus our portfolio of businesses to deliver even more meaningful value growth, profitability and shareholder return."

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