Coherent Announces Agreement to Sell Aerospace and Defense Business to Advent for $400 Million
Coherent (NYSE:COHR) has announced a definitive agreement to sell its Aerospace and Defense business to Advent for $400 million. The transaction, expected to close in Q3 2025, involves approximately 550 employees across 10 geographic sites.
The proceeds will be used to reduce debt, which will be immediately accretive to Coherent's EPS. The sale aligns with Coherent's strategic portfolio optimization to focus on core growth markets. Following the closure, the Aerospace and Defense business will operate under a new name, to be announced later.
Advent, managing over $94 billion in assets, plans to significantly invest in R&D to strengthen the business's position in advanced laser and optical solutions. The private equity firm brings extensive experience in the national security sector, with previous investments in Cobham, Ultra Electronics, and Maxar Technologies.
Coherent (NYSE:COHR) ha annunciato un accordo definitivo per vendere la sua divisione Aerospaziale e Difesa ad Advent per $400 milioni. L'operazione, che dovrebbe concludersi nel terzo trimestre 2025, coinvolge circa 550 dipendenti distribuiti su 10 siti geografici.
I proventi saranno utilizzati per ridurre il debito, con un impatto immediato positivo sull'EPS di Coherent. La cessione rientra nell'ottimizzazione strategica del portafoglio di Coherent, finalizzata a concentrare le risorse sui mercati core in crescita. A seguito del closing, la divisione Aerospaziale e Difesa operer脿 con un nuovo nome che sar脿 comunicato successivamente.
Advent, che gestisce oltre $94 miliardi di asset, intende investire in modo significativo in R&S per rafforzare la posizione dell'attivit脿 nelle soluzioni laser e ottiche avanzate. La societ脿 di private equity porta con s茅 una consolidata esperienza nel settore della sicurezza nazionale, avendo gi脿 investito in Cobham, Ultra Electronics e Maxar Technologies.
Coherent (NYSE:COHR) ha anunciado un acuerdo definitivo para vender su negocio Aeroespacial y de Defensa a Advent por $400 millones. La transacci贸n, que se espera cierre en el tercer trimestre de 2025, afecta aproximadamente a 550 empleados en 10 ubicaciones geogr谩ficas.
Los ingresos se destinar谩n a reducir deuda, lo que ser谩 inmediatamente positivo para las ganancias por acci贸n (EPS) de Coherent. La venta forma parte de la optimizaci贸n estrat茅gica del portafolio de Coherent para centrarse en sus mercados principales en crecimiento. Tras el cierre, el negocio Aeroespacial y de Defensa operar谩 bajo un nuevo nombre que se anunciar谩 m谩s adelante.
Advent, que gestiona m谩s de $94 mil millones en activos, planea realizar importantes inversiones en I+D para fortalecer la posici贸n del negocio en soluciones l谩ser y 贸pticas avanzadas. La firma de capital privado aporta amplia experiencia en el sector de seguridad nacional, con inversiones previas en Cobham, Ultra Electronics y Maxar Technologies.
Coherent (NYSE:COHR)电� 頃车鞖办＜ 氚� 氚╈渼 靷梾攵�毳� Advent鞐� 4鞏� 雼煬鞐� 毵り皝頃橁赴搿� 頇曥爼 瓿勳暯鞚� 氚滍憸頄堨姷雼堧嫟. 鞚� 瓯半灅电� 2025雲� 3攵勱赴鞐� 毵堧毽悹 鞓堨爼鞚措┌, 鞎� 550氇� 攴滊鞚� 歆侅洂鞚� 10臧� 歆�鞐棎 瓯胳硱 攴茧頃橁碃 鞛堨姷雼堧嫟.
毵り皝雽�旮堨潃 攵�毂� 靸來櫂鞐� 靷毄霅� 鞓堨爼鞚措┌, 鞚吹鐢 Coherent鞚� 欤茧嫻靾滌澊鞚�(EPS)鞐� 歃夓嫓 旮嶌爼鞝侅澑 鞓來枼鞚� 氙胳範 瓴冹瀰雼堧嫟. 鞚措矆 毵り皝鞚� 頃奠嫭 靹膘灔 鞁滌灔鞐� 歆戩頃橁赴 鞙勴暅 Coherent鞚� 鞝勲灥鞝� 韽姼韽措Μ鞓� 斓滌爜頇旍檧 鞚检箻頃╇媹雼�. 瓯半灅 膦呹舶 頉� 頃措嫻 靷梾攵�电� 於旐泟 氚滍憸霅� 靸堧鞖� 氇呾弓鞙茧 鞖挫榿霅╇媹雼�.
Advent电� $94 billion鞚� 鞛愳偘鞚� 鞖挫毄頃橁碃 鞛堨溂氅�, 觳嫧 霠堨澊鞝� 氚� 甏戫暀 靻旊（靺� 攵勳暭鞐愳劀 靷梾 瓴届焷霠レ潉 臧曧檾頃橁赴 鞙勴暣 鞐瓣惮臧滊皽(R&D)鞐� 雽�雽�鞝侅溂搿� 韴瀽頃� 瓿勴殟鞛呺媹雼�. 鞚� 靷韼�霌湹鐢 Cobham, Ultra Electronics, Maxar Technologies 霌膘棎 雽�頃� 瓿缄卑 韴瀽 瓴巾棙鞚� 韱淀暣 甑皜 鞎堧炒 攵勳暭鞐愳劀 頀嶋秬頃� 瓴巾棙鞚� 氤挫湢頃橁碃 鞛堨姷雼堧嫟.
Coherent (NYSE:COHR) a annonc茅 un accord d茅finitif pour c茅der son activit茅 A茅rospatiale et D茅fense 脿 Advent pour 400 millions de dollars. La transaction, qui devrait 锚tre finalis茅e au troisi猫me trimestre 2025, concerne environ 550 employ茅s r茅partis sur 10 sites g茅ographiques.
Le produit de la vente sera utilis茅 pour r茅duire la dette, ce qui aura un effet imm茅diatement positif sur le BPA (EPS) de Coherent. Cette cession s'inscrit dans l'optimisation strat茅gique du portefeuille de Coherent, visant 脿 se concentrer sur ses march茅s cl茅s en croissance. Apr猫s la cl么ture, l'activit茅 A茅rospatiale et D茅fense op茅rera sous un nouveau nom qui sera communiqu茅 ult茅rieurement.
Advent, qui g猫re plus de 94 milliards de dollars d'actifs, pr茅voit d'investir massivement en R&D pour renforcer la position de l'activit茅 dans les solutions laser et optiques avanc茅es. La soci茅t茅 de capital-investissement dispose d'une vaste exp茅rience dans le secteur de la s茅curit茅 nationale, avec des investissements ant茅rieurs dans Cobham, Ultra Electronics et Maxar Technologies.
Coherent (NYSE:COHR) hat eine endg眉ltige Vereinbarung zum Verkauf seines Luftfahrt- und Verteidigungsgesch盲fts an Advent 蹿眉谤 $400 Millionen bekannt gegeben. Die Transaktion, die voraussichtlich im dritten Quartal 2025 abgeschlossen wird, betrifft rund 550 Besch盲ftigte an 10 Standorten.
Die Erl枚se sollen zur Schuldenreduzierung verwendet werden und wirken sich sofort positiv auf das Ergebnis je Aktie (EPS) von Coherent aus. Der Verkauf ist Teil der strategischen Portfoliooptimierung von Coherent, um sich auf die zentralen Wachstumsm盲rkte zu konzentrieren. Nach Abschluss wird das Luftfahrt- und Verteidigungsgesch盲ft unter einem neuen Namen operieren, der sp盲ter bekanntgegeben wird.
Advent, das 眉ber $94 Milliarden an Verm枚genswerten verwaltet, plant erhebliche Investitionen in F&E, um die Position des Gesch盲fts im Bereich fortschrittlicher Laser- und optischer L枚sungen zu st盲rken. Die Private-Equity-Gesellschaft bringt umfassende Erfahrung im Bereich nationale Sicherheit mit, unter anderem durch fr眉here Investments in Cobham, Ultra Electronics und Maxar Technologies.
- Sale price of $400 million strengthens balance sheet
- Immediate EPS accretion through debt reduction
- Strategic alignment with core growth markets focus
- Buyer commits to significant R&D investment in the business
- Divestment of established defense technology business
- Reduction in business diversification
- Loss of approximately 550 skilled employees
Insights
Coherent's $400M sale of A&D business to Advent reduces debt, streamlines focus on core markets, and improves EPS.
Coherent's
The deal encompasses approximately 550 employees across 10 geographic sites, suggesting this is a substantial but focused segment of Coherent's overall operations. For context, this transaction allows Coherent to concentrate its resources and management attention on its self-identified core growth markets, particularly in photonics applications for datacenter, communications, and industrial markets.
This divestiture follows a common strategy among technology companies to streamline operations by selling non-core assets to specialized buyers who may derive greater value from them. Advent, with its established presence in the national security sector through investments in companies like Cobham, Ultra Electronics, and Maxar Technologies, represents a strategic buyer with the industry expertise and capital to potentially grow this business more effectively than Coherent could while juggling multiple market segments.
The expected closing in Q3 2025 provides reasonable time for regulatory approvals, which are typically scrutinized for defense-related assets. The retention of the Coherent brand until closing indicates a thoughtful transition plan to maintain business continuity and customer relationships during the ownership change. This disciplined approach to portfolio management demonstrates management's commitment to optimizing capital allocation and focusing on areas where they believe Coherent has the strongest competitive advantages.
SAXONBURG, Pa., Aug. 13, 2025 (GLOBE NEWSWIRE) -- Coherent Corp. (NYSE: COHR) (鈥淐oherent,鈥� 鈥淲e,鈥� or the 鈥淐ompany鈥�), a global leader in photonics, today announced that it has entered into a definitive agreement to sell its Aerospace and Defense business to Advent, a leading global private equity investor, for
Coherent鈥檚 Aerospace and Defense designs and manufactures optical and laser systems for defense applications. The business includes approximately 550 employees and 10 geographic sites.
鈥淲e are pleased to have reached this agreement with Advent. As part of our strategic portfolio optimization process, this transaction furthers our strategy to concentrate efforts on core growth markets and products,鈥� said Jim Anderson, CEO of Coherent.
鈥淐oherent鈥檚 Aerospace and Defense business is an exceptional business with a distinguished heritage in pioneering optical and laser technology for the world鈥檚 most demanding applications,鈥� said Shonnel Malani, Managing Partner at Advent. 鈥淭his acquisition is complementary to our existing investments in the sector and underscores our commitment to investing in mission-critical national security technologies. We are excited to partner with the talented management team, and we plan to invest significantly in R&D to further solidify the business鈥檚 leadership in advanced laser and optical solutions.鈥�
Closing Conditions
The transaction is expected to close in the third quarter of calendar year 2025, subject to customary closing conditions. Following close, the Aerospace and Defense business will operate under a new name, which will be announced at a later date. Until that time, the Aerospace and Defense business will continue to operate under the Coherent brand.
About Coherent
Coherent is the global photonics leader. We harness photons to drive innovation. Industry leaders in the datacenter & communications and industrial markets rely on Coherent鈥檚 world-leading technology to fuel their own innovation and growth.
Founded in 1971 and operating in more than 20 countries, Coherent brings the industry鈥檚 broadest, deepest technology stack; unmatched supply chain resilience; and global scale to help its customers solve their toughest technology challenges. Visit our website at .
About Advent
Advent is a leading global private equity investor committed to working in partnership with management teams, entrepreneurs, and founders to help transform businesses. With 16 offices across five continents, we oversee more than USD
Since our founding in 1984, we have developed specialist market expertise across our five core sectors: business & financial services, consumer, healthcare, industrial, and technology. This approach is bolstered by our deep sub-sector knowledge, which informs every aspect of our investment strategy, from sourcing opportunities to working in partnership with management to execute value creation plans. We bring hands-on operational expertise to enhance and accelerate businesses.
As one of the largest privately-owned partnerships, our 660+ colleagues leverage the full ecosystem of Advent鈥檚 global resources who bring hands-on operational expertise to help enhance and accelerate businesses. This includes our Portfolio Support Group, insights provided by industry expert Operating Partners and Operations Advisors, as well as bespoke tools to support and guide our portfolio companies as they seek to achieve their strategic goals.
Advent has a strong track record of investing in the national security sector, including past and current investments in Cobham (2020), Ultra Electronics (2022) and Maxar Technologies (2023). The firm will leverage its global network, operating expertise, and long-term investment horizon to support the company鈥檚 strategic initiatives.
To learn more, visit our or connect with us on .
*Assets under management (AUM) as of March 31, 2025. AUM includes assets attributable to Advent advisory clients as well as employee and third-party co-investment vehicles.
Forward-Looking Statements
This press release contains statements, estimates, and projections that constitute 鈥渇orward-looking statements鈥� as defined under U.S. federal securities laws. The words "expect," "anticipate," "estimate" and similar words and expressions are intended to identify such forward-looking statements. In addition, any statements that refer to expectations or other characterizations of future events or circumstances, including statements about the timing of closing of the sale of our Aerospace and Defense business, the use of proceeds therefrom, the impact of the sale on our financial results, and our expectations with respect to optimizing our strategic portfolio and focusing on core growth markets, are forward-looking statements, which are made pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. The forward-looking statements contained herein are not guarantees of future performance and are subject to certain risks and uncertainties that could cause the Company鈥檚 actual results to differ materially from its historical experience and our present expectations or projections.
The Company believes that all forward-looking statements made by it herein have a reasonable basis, but there can be no assurance that management鈥檚 expectations, beliefs, or projections as expressed in the forward-looking statements will actually occur or prove to be correct. In addition to general industry and global economic conditions, factors that could cause actual results to differ materially from those discussed in the forward-looking statements herein include but are not limited to: (i)聽the failure of any one or more of the assumptions stated herein to prove to be correct; (ii)聽the terms of the Company鈥檚 indebtedness and ability to service such debt, (iii) risks relating to future integration and/or restructuring actions; (iv)聽fluctuations in purchasing patterns of customers and end users; (v)聽the ability of the Company to retain and hire key employees; (vi)聽changes in demand in the Company鈥檚 end markets along with the Company鈥檚 ability to respond to such market changes; (vii)聽the timely release of new products and acceptance of such new products by the market; (viii)聽the introduction of new products by competitors and other competitive responses; (ix)聽the Company鈥檚 ability to assimilate other recently acquired businesses, and realize synergies, cost savings, and opportunities for growth in connection therewith, together with the risks, costs, and uncertainties associated with such acquisitions; (x)聽the risks to realizing the benefits of investments in research and development and commercialization of innovations; (xi)聽the risks that the Company鈥檚 stock price will not trade in line with industrial technology leaders; (xii)聽the impact of trade protection measures, such as import tariffs by the United States or retaliatory actions taken by other countries; and/or (xiii)聽the risks relating to forward-looking statements and other 鈥淩isk Factors鈥� identified from time to time in our filings with the SEC, including our Annual Report on Form聽10-K聽for the fiscal year ended June聽30, 2024, and our subsequently filed Quarterly Reports on Form聽10-Q,聽which filings are available from the SEC. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Company disclaims any obligation to update information contained in these forward-looking statements, whether as a result of new information, future events or developments, or otherwise.
Media Contacts
For Coherent:
Amy Wilson
Manager, Corporate Communications
For Advent:
Peter Folland
Senior Communications Manager, Advent
# # #
FAQ
What is the value of Coherent's Aerospace and Defense business sale to Advent?
When will Coherent's Aerospace and Defense business sale close?
How will Coherent use the proceeds from the Aerospace and Defense business sale?
How many employees are affected by Coherent's Aerospace and Defense business sale?
What is Advent's experience in the defense sector?
What will happen to the Coherent Aerospace and Defense business name after the sale?
