British engineering company Goodwin has announced it is considering selling off parts of its business, which supplies components for major defence and nuclear programmes. The Stoke-on-Trent-based group is exploring a possible sale of a "substantial part" of its mechanical engineering division.
This division includes Goodwin Steel Castings (GSC), Goodwin International (GI), Noreva, Easat, and Pumps. The firm's board confirmed on Friday that it has commenced a strategic review to "consider a range of potential options to maximise value for shareholders."
Goodwin's mechanical engineering division is a key supplier of components to UK and US frigate and submarine programmes, such as Britain's Dreadnought programme for nuclear deterrent submarines and the Type 26 frigate programme. Goodwin Steel Castings and Goodwin International have reportedly boosted the company's profits due to increased defence spending.
Discussions are ongoing, and there is no certainty that a sale will take place. Rothschild & Co is advising the board on the strategic review. Following the announcement, Goodwin's shares were up by about 10% on Friday morning.