Goodwin shares tumble as sells part of Mechanical Engineering unit

Goodwin PLC on Wednesday confirmed the sale of a substantial part of its Mechanical Engineering division to an affiliate of New York-based Cerberus Capital Management LP.

The Stoke-on-Trent, Staffordshire-based mechanical and refractory engineering company expects the sale, for up to £1.1 billion, to complete in the first quarter of 2027.

The acquisition includes Goodwin Steel Castings Ltd, Goodwin International Ltd, Noreva GmbH, Easat Group and the Pumps division.

Cerberus was founded by billionaire Stephen Feinberg, the current US deputy secretary of Defense. Until March 2025 when he entered his US government role, he was co-chief executive officer of Cerberus.

Goodwin had attracted interest from several buyout firms earlier this summer. The UK company is engaged in a strategic review to sell a significant part of its mechanical engineering division, which includes several assets, including Goodwin Steel Castings, Goodwin International, Noreva, Easat and Pumps.

Along with making components for UK nuclear submarines, Goodwin supplies US Virginia- and Columbia-class submarines as well as guided-missile destroyers and the Gerald R Ford-class aircraft carrier.

Goodwin Chair Timothy Goodwin 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."

He added: "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."

Goodwin said: "The board believes the transaction 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."

Goodwin shares were down 6.9% to 14,380.00 pence each on Wednesday morning in London. The stock had closed down 20% on Tuesday, after the Financial Times had reported a deal of around £1 billion was in the offing. Analysts said Goodwin shareholders were disappointed by the price achieved.

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