Goodwin weighs sale of defence-linked engineering units
Goodwin is exploring a possible sale of parts of its Mechanical Engineering division, including defence operations, as part of a strategic review.
British engineering firm Goodwin has announced it is exploring the potential sale of parts of its Mechanical Engineering division as part of a broader strategic review. The company, based in Stoke-on-Trent, said the review would consider a range of options, including divesting businesses within the division.
The Mechanical Engineering division houses Goodwin's defence-related manufacturing operations, alongside its industrial engineering and pumps businesses. The company primarily produces heavy-duty, high-precision industrial components and mineral-based materials for the defence, nuclear, and energy sectors.
Goodwin's defence operations manufacture surveillance system parts and critical components for ships and submarines. These operations account for roughly 57% of the company's forward order book. The Financial Times reported earlier that several buyout firms with defence-sector experience had submitted expressions of interest in recent weeks.
The potential sale comes amid rising defence budgets following conflicts in Ukraine and Iran, which have accelerated consolidation across the sector. Larger defence contractors are increasingly targeting suppliers and military technology firms to strengthen supply chains.
In November, the controlling Goodwin family sold shares representing about 1.6% of the company's share capital to institutional investors. Goodwin shares fell earlier this year after the company said the Iran war had delayed orders in the Middle East and prompted it to consider reducing dividend payouts.