UK's Goodwin explores sale of engineering assets

Aug 7 (Reuters) - British engineering company Goodwin said on Friday it was exploring a potential sale of parts of its mechanical engineering business as it embarks on a broader strategic review.

• The company said the review would consider a range of options, including the potential sale of businesses within its Mechanical Engineering division, home to its defence-related manufacturing operations as well as its industrial engineering and pumps businesses.

• Goodwin primarily manufactures heavy-duty, high-precision industrial components and mineral-based materials for the defence, nuclear and energy industries.

• The Financial Times reported earlier on Friday that Goodwin was in talks to sell its defence business, with several buyout firms with defence-sector experience submitting expressions of interest to the company in recent weeks.

• The Stoke-on-Trent-based company's defence operations manufacture surveillance system parts and critical components for ships and submarines, and account for about 57% of Goodwin's forward order book.

• Rising defence budgets following conflicts in Ukraine and Iran have accelerated consolidation across the sector, with larger defence contractors increasingly targeting suppliers and military technology firms to strengthen supply chains.

• In November, the company's controlling shareholder, the Goodwin family, sold shares representing about 1.6% of the company's share capital to institutional investors.

• Goodwin shares fell earlier this year after the company said the Iran war had delayed orders in the Middle East and prompted it to consider reducing dividend payouts.

($1 = 0.7434 pounds)

(Reporting by Rishabh Jaiswal and Atharva Singh in Bengaluru. Editing by Nivedita Bhattacharjee and Mark Potter)