Stoke-on-Trent-based Goodwin is reviewing options to sell a substantial part of its mechanical engineering division, a key supplier for UK and US defence programmes.
Key facts
- •Goodwin is exploring the sale of a substantial part of its mechanical engineering division.
- •The division supplies components for the UK's Dreadnought submarine and Type 26 frigate programmes.
- •Rothschild & Co has been appointed to advise the board on the strategic review.
- •The company is majority owned and managed by the Goodwin family.
- •Goodwin shares increased by about 10% on Friday following the announcement.
British engineering group Goodwin has announced it is conducting a strategic review to explore the potential sale of a significant portion of its mechanical engineering division. The Stoke-on-Trent-based company, which supplies components for major nuclear and defence programmes, stated it is considering options to maximize shareholder value. Rothschild & Co is currently advising the board on the review process.
Scope of the Potential Sale
The potential sale concerns the mechanical engineering division, which encompasses Goodwin Steel Castings, Goodwin International, Noreva, Easat, and Pumps. These entities are critical suppliers for UK and US naval projects, including the Royal Navy's Dreadnought submarine programme and the Type 26 frigate development.
Market Context and Performance
Goodwin, founded in 1883 and listed on the London Stock Exchange, has seen its profits bolstered by increased global defence spending. While the company faces ongoing discussions regarding a potential transaction, the board emphasized that there is no certainty a sale will occur. Following the announcement, Goodwin's share price rose by approximately 10% on Friday morning.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by BBC Business.
