Goodwin PLC to sell mechanical engineering division for £1.1 billion

Goodwin PLC has agreed to sell a substantial portion of its Mechanical Engineering Division to an affiliate of Cerberus Capital Management for approximately £1.1 billion. The deal includes several key units: Goodwin Steel Castings Limited, Goodwin International Limited, Noreva GmbH, Easat Group, and the Pumps Division. These operations provide critical components for warships and submarines.

The transaction is expected to be completed in the first quarter of 2027, pending regulatory approvals and an internal reorganization. Before the sale is finalized, Goodwin will transfer the assets and operations of the division into a new legal entity. The management teams and relevant central function employees are expected to transfer with the business.

For the financial year ending April 30, 2026, the Mechanical Engineering Business reported £206 million in gross assets and £69 million in operating profits. Goodwin PLC Chairman Timothy JW Goodwin stated the move is intended to reposition the business and generate value for shareholders. Following the sale, the company intends to return a significant portion of the net cash proceeds to its shareholders.