Canadian acquisition gears David Brown for growth

DAVID Brown has cemented its global presence after following up a South Korean contract win by buying an industrial gear manufacturer for around £15.5m.

The Yorkshire gear systems business has acquired Unigear Industries, based in Montreal, Canada.

Although David Brown already has a presence in the North American market, in areas such as mining and oil and gas, it believes the acquisition will enhance its growth further as it will be able to use Unigear’s expertise and market knowledge.

The business, which already owns Michigan-based gearing business Cone Drive, is looking to expand its global presence and push further into markets such as rail and renewables.

David Brown, which can trace its history back to the mid-1860s, has operations in countries including Australia, China, India and the United Arab Enirates.

TheBusinessDesk.com reported earlier this week how David Brown had won a contract to work on the next generation of offshore wind turbines on behalf of Samsung Heavy Industries.

The Unigear executive team, including president Ron Mehra and vice-president Peter Zurcher, will remain with the company.
 
David Brown, which once owned Aston Martin and was a major tractor manufacturer, is also set to establish a service centre at the Montreal facility to support customers in Canada.

It is also planning to open a service centre in the mining region of Kentucky, and in other locations across North America.

John Paterson, chief executive of David Brown, said: “We are delighted to have acquired Unigear, it is a very successful business that we want to further grow and develop.

“It is a perfect strategic fit for David Brown with its combination of customer relationships, experience, skills and precision gear manufacturing equipment. 

“We are looking forward to working closely with Ron, Peter and the team and building a strong and prosperous future together.”

Mr Mehra said the deal presented a “fantastic opportunity” for Unigear.

He said: “I am delighted we are becoming part of a global business and a North American team which has many of the same values as Unigear. We are excited about growing our businesses together. Between us we have more than 260 years of gearing expertise.”

As previously reported, David Brown is to build new office space and a research centre in Mirfield, West Yorkshire.