British engineering firm Goodwin has struck a £1.1 billion deal to sell parts of its business, which supplies components for submarines and naval vessels.
Cerberus, a private equity firm set up by US defence official Stephen Feinberg, has agreed to buy parts of Goodwin’s mechanical engineering business, including defence operations.
It comes after the Stoke-on-Trent-based group, which is made up of several companies, said it was exploring a possible sale in August.
Goodwin said the deal is expected to complete in the first quarter of next year, subject to regulatory approval.
It added that it will undertake an “internal reorganisation” across the group prior to completing the sale.
Timothy J W Goodwin, chairman of 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.
“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.
“Their commitment has created businesses with strong reputations, talented teams and excellent customer relationships which are well positioned for future growth with the support of Cerberus, an experienced investor with a strong and relevant track record of supporting businesses across the defence and industrial sectors to deliver on their underlying potential.”
Michael Sanford, global head of private equity and co-head of supply chain and strategic opportunities at Cerberus, said: “Cerberus has a clearly defined and established strategy to invest behind leading defence and industrial businesses that benefit the needs and goals of Western-allied nations.
“This investment epitomises these priorities and Cerberus is committed, as it has been for the past 20 years to investing in the UK and with the support of our longstanding team based in London.”
Last month, Goodwin revealed that profits more than doubled over the past year as a global increase in military spending support demand for radar equipment and submarine parts.
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