Goodwin PLC has agreed to sell a substantial part of its Mechanical Engineering division to an affiliate of Cerberus Capital Management for up to approximately £1.1bn in cash, subject to customary closing adjustments.
The transaction, announced on September 9, 2026, covers several Goodwin entities including Goodwin Steel Castings Limited, Goodwin International Limited, Noreva GmbH, Easat Group, and the company’s Pumps Division.
Under the deal, Goodwin will retain its Refractory Engineering Division and Technological Division, which includes Internet Central and Duvelco. The firm began a strategic review of its portfolio on August 7, 2026, before finalizing the agreement with Cerberus.
For the financial year ended April 30, 2026, the Mechanical Engineering Business carried gross assets of £206m and generated operating profits of £69m. The retained businesses reported gross assets of £118m and operating profits of £10m over the same period.
Goodwin said it intends to pay a significant proportion of net cash proceeds to shareholders, though the amount, timing, and form of any return will be determined by the board.
Cerberus Capital Management is a global alternative investment firm managing approximately $72bn across credit, real estate, and private equity strategies. It has maintained a London office since 2005.
Adam Deeth and Anthony Thomas are expected to step down as directors and transfer with the Mechanical Engineering Business, conditional on completion. Rothschild & Co is advising Goodwin financially, and Ashurst Perkins Coie UK LLP is providing legal counsel.
Goodwin is undertaking an internal reorganization to transfer the assets and operations of the Mechanical Engineering Business into a new legal entity ahead of closing. The transaction constitutes a significant transaction under UK Listing Rules but does not require shareholder approval.
Completion is expected in the first quarter of 2027, subject to regulatory approvals and the internal reorganization.
