Stoke-on-Trent engineering group Goodwin has agreed to sell parts of its mechanical engineering business, including operations supplying components for submarines and naval vessels, to US private equity firm Cerberus for £1.1bn.
The deal covers Goodwin Steel Castings, Goodwin International, Noreva, Easat and Pumps, which together form a substantial part of the group’s mechanical engineering division.
The transaction is expected to complete in the first quarter of 2027, subject to regulatory approval. Goodwin said it will undertake an internal reorganisation across the group ahead of completion.
Defence demand drives growth
The sale comes as demand for defence manufacturing continues to increase, with Goodwin reporting that profits more than doubled over the past year.
The business has benefited from increased global military spending, which has driven demand for products including radar equipment and submarine components.
Goodwin Steel Castings and Goodwin International are among the businesses included in the transaction, with the group’s wider manufacturing operations supplying highly engineered products to customers across the defence and industrial sectors.
The deal will see Cerberus take ownership of the businesses as demand for defence equipment and supporting industrial capabilities continues to grow.
Goodwin, which remains majority owned and managed by the Goodwin family, said the sale forms part of a wider reorganisation of the group.
The transaction highlights the growing value of specialist UK engineering and manufacturing capabilities as governments and defence organisations increase spending and look to strengthen industrial capacity.
For Goodwin’s businesses, the change in ownership comes at a time of strong demand for the advanced manufacturing capabilities used across the defence supply chain, particularly in areas such as naval engineering, submarine systems and radar technology.
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