Coherent Announces Agreement to Sell Aerospace and Defense Business to Advent for $400 Million

Core Viewpoint - Coherent Corp. has entered into a definitive agreement to sell its Aerospace and Defense business to Advent for $400 million, which will be used to reduce debt and is expected to be immediately accretive to Coherent's EPS [1][2]. Company Overview - Coherent is a global leader in photonics, specializing in optical and laser systems for various applications, including defense [2][5]. - The Aerospace and Defense business employs approximately 550 people and operates across 10 geographic sites [2]. Strategic Rationale - The sale is part of Coherent's strategic portfolio optimization process, allowing the company to focus on core growth markets and products [2][3]. - The CEO of Coherent expressed satisfaction with the agreement, highlighting its alignment with the company's strategic goals [2]. Advent's Perspective - Advent views the Aerospace and Defense business as an exceptional opportunity that complements its existing investments in national security technologies [3][10]. - Advent plans to invest significantly in research and development to enhance the business's leadership in advanced laser and optical solutions [3]. Transaction Details - The transaction is expected to close in the third quarter of calendar year 2025, pending customary closing conditions [4]. - Post-closure, the Aerospace and Defense business will operate under a new name, which will be announced later [4].