Goodwin has agreed to sell a substantial part of its mechanical engineering division to alternative investment sponsor Cerberus Capital Management for an enterprise value of up to £1.1bn in cash.
The primary corporate carve-out encompasses five operational units: Goodwin Steel Castings, Goodwin International, Noreva, Easat Group and the pumps division.
The target assets generated £69m in operating profit on £206m of gross assets for the financial year ending 30 April 2026, implying an entry valuation multiple of approximately 16 times operating earnings.
Cerberus is executing the acquisition through its dedicated supply chain and strategic opportunities fund, deploying London-based private equity capital alongside third-party debt facilities to fund the equity ticket.
Completion is scheduled for the first quarter of 2027 to allow for a multi-stage internal reorganisation into a new legal entity, alongside mandatory cross-border regulatory clearances.
Given the division’s critical position in Western naval defence and industrial supply chains, the transaction will undergo formal review under the UK National Security and Investment Act alongside customary antitrust screening.
The carve-out creates a standalone platform for Cerberus, which will assume operational control while retaining existing management teams. Members of the founding Goodwin family will assist with transitional integration before exiting operations.
Following completion, Goodwin will operate on a zero net debt balance sheet, retaining its refractory engineering and technological units, which generated £10m in operating profit in 2026.
The listed parent plans to return a significant proportion of the net cash proceeds to shareholders, using the balance to fund organic growth across its remaining divisions.
Executive directors Adam Deeth and Anthony Thomas will step down from the Goodwin board upon completion to join the newly formed platform entity.
Timothy Goodwin, chairman of Goodwin PLC, 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.”
Michael Sanford, global head of private equity at Cerberus, added: “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.
“Under Cerberus ownership, these businesses will be supported to grow and succeed in their ability to contribute to our collective security.”
