Goodwin in Talks to Divest Defence Business Amid Rising Industry Transactions
Goodwin, a British supplier with a market cap of £1.4 billion, is exploring the sale of its defence sector. This comes in a context of increased military spending and a surge in defence-related transactions globally, exceeding $40 billion in 2023.
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Goodwin is considering selling its defence business, which constitutes 57% of its £287 million order book. The firm has received interest from multiple buyout firms specializing in defence. Goodwin, based in Stoke-on-Trent, has seen a 14% decline in shares this year due to missed orders and delays.
The company supplies critical components for UK and US Navy vessels, including Dreadnought-class submarines. The defence sector's growth aligns with rising global military budgets, especially following recent conflicts. Any sale will likely face scrutiny from UK and US authorities for national security implications.
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