Coherent Sells Aerospace and Defense Unit to Advent for $400 Million
Deal News | Aug 13, 2025 | Advent International
Coherent Corp., an industry leader in photonics, has reached a definitive agreement to sell its Aerospace and Defense business to Advent International for $400 million. The transaction allows Coherent to focus on its strategic portfolio by concentrating on core growth markets and reducing debt, which will be immediately accretive to their earnings per share (EPS). The Aerospace and Defense division, with approximately 550 employees across ten geographic sites, is acclaimed for its advanced optical and laser technology used in defense applications. Advent, as a global private equity firm with significant investments in national security sectors, plans to invest in research and development to enhance the business's capabilities in advanced laser and optical solutions. The transaction is anticipated to close by the third quarter of 2025, with the business operating under a yet-to-be-announced new name. Advent’s acquisition complements its existing defense investments, such as Cobham, Ultra Electronics, and Maxar Technologies, and strengthens its foothold in mission-critical national security markets.
Sectors
- Photonics
- Aerospace and Defense
- Private Equity
Geography
- United States – Coherent Corp. is a U.S.-based company, and the transaction relates to its domestic operations in the aerospace and defense sector.
- Global – Both Coherent and Advent International have extensive global operations, indicating that the geographic impact of the transaction will extend beyond the United States.
Industry
- Photonics – Coherent is a global leader in photonics technology, which plays a critical role in their operations and the products they offer in various sectors including aerospace and defense.
- Aerospace and Defense – Coherent's division focuses on defense applications, providing optical and laser systems, highlighting its significance in the aerospace and defense sector.
- Private Equity – Advent International's role as a private equity firm acquiring Coherent's division for strategic investment illustrates the dynamics of private equity funding and acquisition practices.
Financials
- $400 million – The agreed sale price for Coherent's Aerospace and Defense business to Advent International.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Coherent Corp. | Selling Company | Company | A global leader in photonics, selling its Aerospace and Defense business unit to optimize its portfolio. |
| Advent International | Bidding Company | Company | A leading global private equity investor acquiring Coherent's Aerospace and Defense business to strengthen its position in the national security sector. |
| Jim Anderson | CEO of Coherent | Person | Chief Executive Officer of Coherent Corp., involved in the strategic decision to divest the Aerospace and Defense business. |
| Shonnel Malani | Managing Partner at Advent | Person | Leading Advent's acquisition strategy focusing on enhancing mission-critical national security technologies. |