Advent International has agreed to acquire the aerospace and defence business of Coherent Corp, which specialises in optical and laser systems, for $400m, with the deal expected to close in the third quarter of the year, subject to customary conditions.
Proceeds will be used by Coherent to reduce debt, which the company said will be immediately accretive to earnings per share.
Post-closing, the business, which employs around 550 people across 10 sites, will operate under a new brand, to be announced later this year.
Coherent CEO Jim Anderson said the divestment forms part of the company’s portfolio optimisation strategy, enabling greater focus on core growth markets.
Advent, which manages over $94bn AUM, described the unit as an “exceptional business with a distinguished heritage” in photonics. Shonnel Malani, Managing Partner, said Advent intends to invest heavily in R&D to strengthen its position in mission-critical defence technologies, while Vice President Rory McMahon added that Advent sees “tremendous potential” to scale capacity and accelerate next-generation product development.
The deal continues Advent’s push into national security and defence, following investments in Cobham (2020), Ultra Electronics (2022) and Maxar Technologies (2023).
