Goodwin Defence Business To Cerberus: British engineering company Goodwin has agreed to sell a large part of its Mechanical Engineering division to US investment firm Cerberus Capital Management. The deal could be worth up to around £1.1 billion in cash.
The agreement was announced on September 9, 2026. The sale includes Goodwin businesses that make important equipment and components for the defence and naval sectors. The transaction is expected to be completed in the first quarter of 2027, but it still needs regulatory approval and an internal company reorganisation.
Goodwin is based in Stoke-on-Trent and has a long history in engineering. The company said the sale will help it focus more closely on the parts of the business that it plans to keep.
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Which Goodwin Businesses are Being Sold?
Cerberus will acquire five major parts of Goodwin’s Mechanical Engineering division. These are Goodwin Steel Castings Limited, Goodwin International Limited, Noreva GmbH, Easat Group and the Pumps Division.
The businesses being sold had £206 million in gross assets and made £69 million in operating profit in the financial year ended April 30, 2026. Their management teams are expected to stay with the businesses after the deal.
The sale doesn’t cover Goodwin’s whole company. Its Refractory Engineering division and Technological division will remain with Goodwin. These remaining businesses had £118 million in gross assets and £10 million in operating profit in the latest financial year.
Goodwin also plans to send a significant part of the money from the sale to shareholders. The exact amount and timing haven’t been decided yet.
Transaction highlights
- The deal is worth up to approximately £1.1 billion, subject to normal closing adjustments.
- Goodwin plans to return a significant part of the net cash proceeds to shareholders.
- The Refractory Engineering and Technological divisions aren’t part of the deal.
- An internal reorganisation will take place before completion.
- The deal is expected to close in the first quarter of 2027 after regulatory approvals.
Why Cerberus Wants the Business
The deal is closely linked to the growing defence market. Goodwin supplies parts used in major naval and submarine programmes. Its businesses include work connected with UK defence projects and US military platforms.
Cerberus said the purchase fits its strategy of investing in defence and industrial companies that support Western-allied countries. Michael Sanford, a senior Cerberus executive, 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.”
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Cerberus also said it has been investing in the UK for around 20 years and has a long-standing team in London. The firm said it wants to help the Goodwin businesses grow under its ownership.
Goodwin’s Strong Growth Before the Sale
The sale comes after a very strong year for Goodwin. Its trading profit reached £77.5 million for the year ended April 30, 2026. That’s up 118% from the previous year. Revenue also rose 27% to £280 million.
Goodwin said demand has increased for its precision-machined castings used in defence and nuclear work. Its chairman Timothy J. W. Goodwin called the deal a major moment for the company and said the businesses being sold have strong teams and customer relationships.
