Engineer Goodwin has sold parts of its mechanical engineering division, which supplies frigate and submarine programmes. Pictured is the under-construction Type 26 frigate HMS Glasgow Picture: Press Association

Goodwin in £1.1 billion Cerberus defence sale

Engineering firm Goodwin has struck a “significant milestone” £1.1 billion deal to sell parts of its business that supply submarines and naval vessel components.

Cerberus has agreed to buy parts of Goodwin’s mechanical engineering business, including defence operations.

The deal includes Goodwin Steel Castings, Goodwin International, Noreva, Easat and a pumps division.

The move comes after Stoke-on-Trent-based Goodwin said it was exploring a possible sale.

The deal is expected to complete in the first quarter of next year, subject to regulatory approval.

Cerberus is a private equity firm set up by US defence official Stephen Feinberg.

Timothy J W Goodwin, chair, said: “This represents a significant milestone in the history of Goodwin as we reposition our business and deliver significant value for shareholders.

“The board would like to express its gratitude to all employees across Goodwin Steel Castings, Goodwin International, Noreva, Easat and the pumps division 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.”

Michael Sanford, Cerberus’ global head of private equity and co-head of supply chain and strategic opportunities, added: “We have a clearly defined strategy to invest behind leading defence and industrial businesses that benefit the needs and goals of Western-allied nations.

“This investment epitomises these priorities.”

Last month, Goodwin revealed profits had more than doubled over the past year amid a global increase in military spending for radar equipment and submarine parts.

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