US Private equity firm Cerberus Capital Management has agreed to acquire a substantial part of Goodwin’s mechanical engineering division for up to £1.1bn in cash.
The transaction covers Goodwin Steel Castings, Goodwin International, Noreva, Easat Group, and the pump division. The businesses provide components to the aerospace, defence, nuclear, power and mining sectors.
The division supplies the UK, US, and Australian navies, and participates in the AUKUS defence project. Operations will remain headquartered in Stoke-on-Trent, which will continue as the main manufacturing site.
The deal forms part of Cerberus’ supply chain fund, which has made more than 24 investments since its launch in 2022. The transaction is expected to close in the first quarter of 2027, subject to regulatory approval.
Advisors on the transaction included UBS Investment Bank and JP Morgan Securities as financial advisors to Cerberus, alongside law firm Davis Polk and Wardwell.
Frank Bruno, chief executive of Cerberus, said: “Our Supply Chain strategy seeks to support companies advancing technology leadership, industrial strength, and supply chain resilience for the US, UK, and our allies. Our long-term commitment to steward the growth and success of the Mechanical Engineering Division of Goodwin shows how important we believe investments in leading UK companies are to advancing the collective security and resilience of all Western-allied nations.”
Michael Sanford, global head of private equity at Cerberus, said: “The Mechanical Engineering Division of Goodwin represents a collection of strengths that we intend to support and grow over time. With differentiated engineering expertise, advanced manufacturing operations, and long-standing positions within critical supply chains, these businesses are well positioned to meet growing customer demand. We look forward to their continued success and contributions to the enduring economic and collective defence relationships between the US, UK and our allied partners around the world.”
