Shares of Goodwin PLC climbed on Wednesday after the British engineering group confirmed it is in advanced talks to sell a substantial chunk of its Mechanical Engineering division for headline cash consideration of up to about
The businesses named as part of the potential transaction are Goodwin Steel Castings, Goodwin International, Noreva, Easat Group and Pumps. The buyer in the discussions is identified as funds advised by Cerberus Capital Management, L.P.
In its announcement, Goodwin described Cerberus as an investor with "significant relevant industry experience." The company also noted that the headline cash consideration is conditional on customary closing adjustments, meaning the final cash figure may change as part of normal completion processes.
Goodwin had first publicly acknowledged a strategic review on August 7 in response to press speculation. At that time the board said the review would seek options to maximize shareholder value while ensuring continuity for customers and other stakeholders. Rothschild & Co is advising Goodwin's board on the review.
When the review was announced, Goodwin made clear that discussions were ongoing and that there was no guarantee a transaction would be completed. The latest confirmation maintains that stance by describing the talks as advanced but not finalised.
Summary
Goodwin PLC confirmed on Wednesday it is in advanced negotiations to sell major parts of its Mechanical Engineering division for up to about , with funds advised by Cerberus named as the prospective purchaser. Rothschild & Co remains the company's adviser on the strategic review, which continues and carries no certainty of completion.
Key points
- Goodwin is in advanced talks to sell several Mechanical Engineering businesses - Goodwin Steel Castings, Goodwin International, Noreva, Easat Group and Pumps - for a headline cash consideration of up to about .
- The potential buyer is funds advised by Cerberus Capital Management, L.P., which Goodwin described as having relevant industry experience.
- Rothschild & Co is advising Goodwin's board as part of a strategic review that the company initiated and confirmed on August 7; at that time Goodwin said there was no certainty a deal would be completed.
Risks and uncertainties
- There is no guarantee the transaction will complete - Goodwin has stated discussions are ongoing and earlier noted that no certainty exists about whether a deal will be finalised. This uncertainty affects corporate and investor outcomes.
- The headline cash consideration is subject to customary closing adjustments, meaning the final amount payable could differ from the stated up to about .
- The strategic review's outcome remains open-ended - while intended to maximise shareholder value and preserve continuity for customers and stakeholders, no definitive result is assured.