BREAKING: Goodwin strikes £1.1bn deal to sell major engineering division

Goodwin plc has agreed a £1.1 billion sale of a substantial part of its Mechanical Engineering division to a US investment firm.

The deal with Cerberus Capital Management includes includes Goodwin Steel Castings, Goodwin International, Noreva GmbH, Easat Group and the Pumps Division.

It is expected to complete in the first quarter of 2027, subject to regulatory approvals and completion of an internal reorganisation to transfer the business into a new legal entity.

Goodwin’s Refractory Engineering and Technological divisions are excluded from the deal and will remain part of the group.

Stoke-on-Trent-headquartered Goodwin said the deal represents a “compelling opportunity to unlock significant shareholder value while creating a more focused Group with a strong balance sheet and enhanced capacity to invest in its remaining businesses”.

Timothy Goodwin, chairman of Goodwin plc, said: “Today’s announcement represents a significant milestone in the history of Goodwin as we reposition our business and deliver significant value for our shareholders.

“The Board would like to express its gratitude to all employees across GSC, GI, Noreva, Easat and Pumps for their dedication, professionalism and contribution over many years.

“Their commitment has created businesses with strong reputations, talented teams and excellent customer relationships which are well positioned for future growth with the support of Cerberus, an experienced investor with a strong and relevant track record of supporting businesses across the defence and industrial sectors to deliver on their underlying potential.

“We are excited about the future of the businesses being transferred and confident that this is in the best of interests of not only shareholders, but wider stakeholders.

“As we look ahead, we are confident of continued success and growth in our remaining businesses and thank all our employees for their continued dedication.”

Michael Sanford, Global Head of Private Equity and Co-Head of Supply Chain and Strategic Opportunities at Cerberus, said: “Cerberus has a clearly defined and established strategy to invest behind leading defence and industrial businesses that benefit the needs and goals of Western-allied nations.

“This investment epitomises these priorities and Cerberus is committed, as it has been for the past 20 years to investing in the UK and with the support of our longstanding team based in London.

“The capabilities and highly skilled employees we are acquiring from Goodwin are second-to-none in their respective fields.

“Under Cerberus ownership, these businesses will be supported to grow and succeed in their ability to contribute to our collective security.

“We thank Goodwin for their decades of responsible stewardship, and Cerberus looks forward to building on that proud heritage to open a new chapter for these businesses.”