Coherent Sells Aerospace and Defense Business to Advent for $400 Million

Coherent Corp. is selling its Aerospace and Defense business to Advent for $400 million, expected to close in Q3 2025, involving 550 employees. The transaction will reduce Coherent's debt and boost earnings per share (EPS). Advent plans to invest in R&D to enhance the business's position in advanced laser and optical solutions.

Coherent Corp. (NYSE: COHR), a global leader in photonics, has announced a definitive agreement to sell its Aerospace and Defense business to Advent, a leading global private equity investor, for $400 million [1]. The transaction, expected to close in Q3 2025, involves approximately 550 employees across 10 geographic sites.

The sale aligns with Coherent's strategic portfolio optimization to focus on core growth markets. The proceeds from the sale will be used to reduce debt, which will be immediately accretive to Coherent's earnings per share (EPS). This move reflects Coherent's commitment to optimizing capital allocation and concentrating resources on its core competencies in photonics applications for datacenter, communications, and industrial markets.

Advent, managing over $94 billion in assets, plans to significantly invest in research and development (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. This strategic buyer is well-positioned to grow the business more effectively than Coherent could while juggling multiple market segments.

The expected closing date 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 Coherent believes it has the strongest competitive advantages. The deal represents a significant step in Coherent's strategic evolution, allowing the company to concentrate on its core photonics markets.

References:
[1] https://www.stocktitan.net/news/COHR/coherent-announces-agreement-to-sell-aerospace-and-defense-business-aun03advix6o.html