Goodwin’s defence arm sold to US firm in £1.1bn deal
Stoke-on-Trent-headquartered engineering group Goodwin has agreed a £1.1bn sale of a substantial part of its Mechanical Engineering division to US investment firm Cerberus Capital Management, one of the largest deals to come out of Staffordshire in recent years
The deal covers Goodwin Steel Castings, Goodwin International, Noreva, Easat Group and the Pumps Division, following an extensive sale process from which Cerberus emerged as the preferred buyer.
Completion is expected 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 ahead of the sale.
Goodwin intends to pay a significant proportion of the net cash proceeds to shareholders, with the timing and form of any payment to be confirmed in due course. The deal excludes the firm‘s Refractory Engineering and Technological divisions, which will remain part of the group and represented £118m in gross assets and £10m in operating profit for the year to 30 April.
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.”
Michael Sanford, global head of private equity 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.”
As part of the deal, Adam Deeth and Anthony Thomas are expected to step down as Goodwin directors and transfer with the Mechanical Engineering Business, with the board beginning a process to appoint a new CFO and general counsel.
The agreement follows Goodwin’s confirmation last month that it had entered advanced talks over the sale, and comes weeks after the company reported record trading profit of £77.5m for the year to 30 April, up 118% on the previous year.
Rothschild & Co and Ashurst Perkins Coie UK LLP advised Goodwin, while UBS Investment Bank and JPMorgan Chase advised Cerberus.
