Goodwin Reportedly in Talks to Sell Defence Business After Order Delays
Goodwin's Defence Business Sale and Market Impact
Background and Sale Discussions
Aug 7 (Reuters) - British mechanical engineering company Goodwin is in talks to sell its defence business, the Financial Times reported on Friday citing people familiar with the matter.
Expressions of Interest from Buyout Firms
• Several buyout firms that have records in defence have submitted expressions of interest to the London-listed company in recent weeks, the FT reported.
Company Response
• Goodwin declined to comment on the FT report.
Financial Performance and Order Delays
Share Price and Dividend Concerns
• Goodwin shares fell this year after it said in March it was considering cutting dividend payouts due to the Iran conflict leading to order delays in the Middle East.
Defence Sector's Role in Goodwin's Business
• Goodwin's defence business manufactures surveillance system parts and critical components for ships and submarines.
Forward Order Book Contribution
• The defence sector accounts for approximately 57% of Goodwin's forward order book.
Strategic Collaborations and Core Operations
International Defence Programs
• In September last year, Goodwin said its Goodwin Steel Castings has entered a strategic collaboration with Northrop Grumman International Trading for international defence programs.
Primary Manufacturing Focus
• Goodwin primarily manufactures heavy-duty, high-precision industrial components and mineral-based materials.
Additional Information
Currency Exchange Rate
($1 = 0.7434 pounds)
Reporting Credits
(Reporting by Rishabh Jaiswal in Bengaluru; Editing by Nivedita Bhattacharjee)
