The company is a key supplier to major defence programmes, including the Royal Navy's Type 26 frigate<\/p>\n
British engineering company Goodwin has said it is considering selling off parts of its business, which supplies components to major defence and nuclear programmes.<\/p>\n
The Stoke-on-Trent-based group said it was exploring a possible sale of a "substantial part" of its mechanical engineering division, which includes Goodwin Steel Castings (GSC), Goodwin International (GI), Noreva, Easat and Pumps.<\/p>\n
In a statement on Friday, the firm's board confirmed it had commenced a strategic review to "consider a range of potential options to maximise value for shareholders".<\/p>\n
Goodwin said discussions were ongoing and that there was no certainty of a sale taking place.<\/p>\n
"The board of Goodwin confirms that it has commenced a strategic review to consider a range of potential options to maximise value for shareholders whilst ensuring continuity for all stakeholders, including customers, and the long-term prosperity of its businesses," the company said.<\/p>\n
"Discussions are ongoing and there can be no certainty that a transaction will be entered into. Rothschild & Co is advising the board of Goodwin on the strategic review."<\/p>\n
The Dreadnought-class submarines are set to replace the UK's Vanguard-class submarines (pictured)<\/p>\n
Goodwin's mechanical engineering division is a key supplier of components to UK and US frigate and submarine programmes.<\/p>\n
This includes Britain's Dreadnought programme, which is building the Royal Navy's next-generation nuclear deterrent submarines, and the Type 26 frigate programme, which is developing a fleet of advanced anti-submarine warships.<\/p>\n
According to its latest annual report, Goodwin Steel Castings and Goodwin International have delivered a boost to the company's profits, having benefited from economies increasing their defence spending.<\/p>\n
A report in the Financial Times said several potential buyers that have records in defence had expressed interest in Goodwin in recent weeks.<\/p>\n
The company, which was founded in 1883, is majority owned and managed by the Goodwin family, while it has shares listed on the London Stock Exchange.<\/p>\n
Its shares were up by about 10% on Friday morning.<\/p>\n
Russ Mould, investment director for AJ Bell, said: "The company is a major supplier to UK and US submarine programmes and has also benefited from bumper defence spending across other parts of its business.<\/p>\n