Goodwin explores sale of major defence engineering assets amid strategic review

British engineering group Goodwin has launched a strategic review and is weighing the disposal of a large portion of its mechanical engineering arm, which supplies key components for UK and US naval programmes.

Goodwin, a publicly listed engineering company founded in 1883 and majority-owned by the Goodwin family, disclosed that its board is conducting a strategic review to consider a range of options for its mechanical engineering segment, which encompasses Goodwin Steel Castings, Goodwin International, Noreva, Easat and Pumps. The review, guided by Rothschild & Co, aims to enhance shareholder returns while preserving continuity for customers and the broader business.

The targeted division is a critical supplier to both British and American frigate and submarine initiatives, including the Dreadnought nuclear-deterrent submarines and the Type 26 anti-submarine frigates. Recent financial reports highlighted profit gains from the defence side, yet the company suffered setbacks earlier in the year after losing two major contracts. Interest from potential defence-focused buyers has been reported, and the company's stock gained about 10% on the news.