Goodwin PLC has agreed to sell a substantial part of its Mechanical Engineering Division to an affiliate of Cerberus Capital Management for up to approximately £1.1 billion. The transaction covers Goodwin Steel Castings Limited, Goodwin International Limited, Noreva GmbH, Easat Group and the Pumps Division. Completion of the transaction is expected in the first quarter of 2027, subject to an internal reorganisation, regulatory approvals and other customary conditions.
As part of the process, Goodwin will reorganise its Mechanical Engineering Business before completion by transferring the relevant assets and operations into a new legal entity. The existing management teams of the businesses will continue with their respective operations, while employees working in relevant central functions will transfer with the business.
The Mechanical Engineering Business generated £206 million in gross assets and £69 million in operating profits for the financial year ended April 30, 2026. The agreed consideration may also include further contingent payments, depending on the outcome of certain ongoing legal proceedings or disputes involving the business.
Timothy JW Goodwin, Chairman of Goodwin PLC, said: “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 and Co-Head of Supply Chain and Strategic Opportunities of Cerberus, said: “Under Cerberus ownership, these businesses will be supported to grow and succeed in their ability to contribute to our collective security.”
The transaction will bring the businesses under the ownership of Cerberus, with their existing management teams continuing to lead operations. Members of the Goodwin family will support the transition process but do not intend to remain involved in the management or operations of the Mechanical Engineering Business following completion.
Goodwin said it intends to return a significant proportion of the net cash proceeds from the sale to shareholders. The amount, timing and form of any return of capital will remain at the discretion of the Board. The proposed transaction represents a significant change in Goodwin PLC’s portfolio and provides the company with substantial cash proceeds following completion. The businesses included in the transaction span steel castings, mechanical engineering, specialist technology and pumps, while Easat operates in the aerospace and defence communications sector.
Subject to the completion conditions being satisfied, the transaction is expected to close during the first quarter of 2027. Until completion, the businesses will continue to operate within Goodwin’s Mechanical Engineering Division, with the planned internal reorganisation undertaken as part of the transaction process.
