Goodwin sells part of defence business for £1.1bn
The group strikes a deal with Cerberus, a firm set up by US defence official Stephen Feinberg.
Goodwin sells part of defence business for £1.1bn
Engineering company Goodwin has agreed to sell parts of its business, which makes components for submarines and naval vessels, for £1.1bn.
The Stoke-on-Trent-based group reached a deal with Cerberus, a private equity firm founded by US defence official Stephen Feinberg, covering parts of its mechanical engineering business, including defence operations.
Goodwin said the transaction is expected to complete in the first quarter of next year, subject to regulatory approval.
After the agreement, the company said it would carry out an "internal reorganisation" across the group before the sale is completed.
"Today's announcement represents a significant milestone in the history of Goodwin as we reposition our business and deliver significant value for our shareholders," said chairman Timothy J W Goodwin.
In August, executives first said they were considering a possible sale of a "substantial part" of its mechanical engineering division, which includes Goodwin Steel Castings (GSC), Goodwin International (GI), Noreva, Easat and Pumps.
Goodwin added: "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 at Cerberus, said the firm was committed to investing in the UK.
Last month, Goodwin said profits more than doubled over the past year as a global rise in military spending boosted demand for radar equipment and submarine parts.
"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."
The company, founded in 1883, is majority owned and run by the Goodwin family, and its shares are listed on the London Stock Exchange.
Last month, it revealed profits more than doubled over the past year as a global increase in military spending supported demand for radar equipment and submarine parts.
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."