Goodwin, a Stoke-on-Trent-based engineering company, announced on Friday that its board has commenced a strategic review to evaluate potential options for maximizing shareholder value. The review specifically focuses on exploring a possible sale of a substantial part of its mechanical engineering division, which encompasses several subsidiaries including Goodwin Steel Castings, Goodwin International, Noreva, Easat, and Pumps.
The company stated that discussions are currently underway regarding the potential transaction, though it emphasized that there is no certainty any sale will occur. Rothschild & Co has been engaged to advise the board throughout the strategic review process. The board confirmed that any actions taken would aim to ensure continuity for all stakeholders, including customers, and support the long-term prospects of its businesses.
Goodwin’s mechanical engineering division plays a significant role as a supplier of components to major defence initiatives. The division provides parts for Britain’s Dreadnought programme, which is developing the Royal Navy’s next-generation nuclear deterrent submarines, and the Type 26 frigate programme, which is creating advanced anti-submarine warships for the UK and US military. Recent financial performance in this division has been strong, with both Goodwin Steel Castings and Goodwin International contributing positively to overall company profits, supported by increased defence spending among various nations.
The company, established in 1883, is majority-owned and managed by the Goodwin family and maintains a listing on the London Stock Exchange. Trading activity on Friday reflected market confidence in the announcement, with share prices rising approximately 10%. Reports indicate that multiple potential buyers with established defence sector credentials have expressed interest in Goodwin recently, though the company maintains that discussions remain ongoing with no guaranteed outcome.
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