Goodwin rises on talks to sell engineering division for up to £1.1 bln

Goodwin PLC shares advanced on Wednesday after the British engineering group confirmed it is holding advanced talks to sell a substantial portion of its Mechanical Engineering division for as much as roughly £1.1 billion.

The proposed transaction covers Goodwin Steel Castings, Goodwin International, Noreva, Easat Group and Pumps, with funds advised by Cerberus Capital Management, L.P. identified as the buyer.

Goodwin characterized Cerberus as an investor possessing substantial relevant sector expertise. The headline cash consideration remains subject to customary closing adjustments.

The company initially disclosed the strategic review on August 7 following press speculation, stating at the time that it would evaluate options designed to maximize shareholder value while ensuring continuity for customers and other stakeholders.

Rothschild & Co is advising Goodwin's board in connection with the review. Goodwin reiterated that discussions were still under way and that there was no certainty a transaction would ultimately be completed.