Brown for spring float after buy-in success

DAVID BROWN, the Huddersfield-based engineering group, is celebrating the third anniversary of its management buy-in by preparing for a spring stock market flotation, writes Heather Connon.

The float, which is expected to value the company at about pounds 70m, will raise new funds for future development, as well as allowing the original backers of the buy-in - Bankers Trust, Charterhouse and Morgan Grenfell - to realise some of their investment. They are, however, likely to retain stakes in the business.

Founded in 1860, David Brown is one of the world's leading manufacturers of power transmission systems.

The buy-in from the family, in January 1990, was led by Christopher Brown and Christopher Cook, both former executives with FKI. They have turned the group from a small pre-tax loss immediately before the buy-in to an pounds 8.3m profit for the year to January 1992.