Goodwin PLC (LSE:GDWN) said it is in advanced discussions over the potential sale of a substantial part of its Mechanical Engineering division for headline cash consideration of up to approximately £1.1 billion.
The proposed transaction would involve Goodwin Steel Castings, Goodwin International, Noreva, Easat Group and Pumps. The potential buyer is funds advised by Cerberus Capital Management, L.P.
The headline cash consideration would be subject to customary closing adjustments.
Goodwin described Cerberus as an investor with relevant industry experience. The company has not confirmed that an agreement will be reached or that a transaction will ultimately be completed.
Goodwin first confirmed a strategic review on August 7 following press speculation. At the time, the company said the review was examining options to maximise shareholder value while maintaining continuity for customers and other stakeholders.
Rothschild & Co is advising Goodwin’s board on the strategic review.
Goodwin shares rose on Wednesday following the announcement of the advanced discussions.
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