Coherent, a leader in photonics, has agreed to sell its Aerospace and Defense business to Advent for $400 million. The proceeds will help reduce Coherent’s debt and enhance its earnings per share (EPS).
The Aerospace and Defense division, which employs around 550 people and operates in 10 locations, designs and manufactures optical and laser systems for defense applications.
Advent, known for its investments in the national security sector, will use its expertise to support the business’s strategic growth.
The deal is expected to close in the third quarter of 2025, subject to customary conditions. After closing, the division will be rebranded, though it will continue to operate under the Coherent name until then.
KEY QUOTES:
“We 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.”
Jim Anderson, CEO of Coherent
“Coherent’s Aerospace and Defense business is an exceptional business with a distinguished heritage in pioneering optical and laser technology for the world’s most demanding applications. This 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’s leadership in advanced laser and optical solutions.”
Shonnel Malani, Managing Partner at Advent
“We see tremendous potential in this business as a standalone entity. Our goal is to build upon its impressive legacy and culture of innovation by providing the resources needed to accelerate production capacity, pursue next-generation opportunities and meet the evolving strategic needs of its customers.”
Rory McMahon, Vice President at Advent
