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Goodwin starts review on possible sale of mechanical engineering unit
The UK-listed engineering firm said it is exploring a sale of a substantial part of its mechanical engineering division, with talks ongoing and no deal certainty.
British engineering company Goodwin has started a strategic review that could lead to the sale of parts of its mechanical engineering business, which supplies components to major defence and nuclear programmes.
Goodwin said it is exploring a possible sale of a substantial part of its mechanical engineering division, encompassing units including Goodwin Steel Castings, Goodwin International, Noreva, Easat and Pumps. The board said it is considering a range of options to maximise value for shareholders, while ensuring continuity for customers and the long-term prosperity of the businesses.
The company also said there can be no certainty a transaction will be entered into, with discussions ongoing. Rothschild & Co is advising the board on the review.
Goodwin said its mechanical engineering division is a key supplier to UK and US frigate and submarine programmes, including the UK’s Dreadnought nuclear deterrent submarine programme and the Type 26 frigate programme. The firm noted in its latest annual report that Goodwin Steel Castings and Goodwin International helped boost profits as economies increased defence spending.