On March 24, 2026, CVD Equipment Corporation (NASDAQ: CVV) announced a pivotal move in its corporate strategy by entering into a definitive agreement to sell its Stainless Design Concepts (SDC) division to Atlas Copco Group. The transaction, valued at approximately $16.9 million in cash, is subject to customary closing conditions and is expected to be finalized during the second quarter of 2026.

2. Strategic Focus and Financial Implications

Manny Lakios, President and Chief Executive Officer of CVD Equipment Corporation, emphasized that this divestiture aligns with the company's previously outlined strategy to explore various strategic alternatives. He stated, “This transaction will allow us to focus on our core CVD Equipment business located in Central Islip, New York.”

The sale is poised to strengthen CVD's balance sheet and provide enhanced financial flexibility, enabling the company to continue evaluating opportunities across its product lines and facilities. The net cash proceeds anticipated from the transaction are approximately $15.0 million after accounting for transaction expenses and taxes, with $900,000 earmarked for escrow to cover post-closing adjustments and indemnification obligations.

3. Retention of Key Assets

Despite selling the SDC division, CVD Equipment Corporation will retain ownership of its facility in Saugerties, New York. As part of the agreement, this facility is set to be leased back to Atlas Copco for an initial term of two years following the transaction's closure. This arrangement not only secures a steady revenue stream for CVD but also allows for continued operational collaboration between the two companies.

4. Looking Ahead

The proceeds from the sale will be strategically reinvested to support initiatives that aim to create shareholder value. CVD Equipment Corporation is committed to maximizing value for its shareholders, and this transaction is a significant step in that direction. The focus will remain on enhancing the core business and exploring new opportunities within the rapidly evolving sectors of aerospace, defense, and advanced materials, including EV battery technologies.

5. About CVD Equipment Corporation

CVD Equipment Corporation specializes in designing, developing, and manufacturing a wide range of equipment and process solutions utilized in chemical vapor deposition, thermal processing, and gas and chemical delivery. Its products serve diverse markets, including aerospace and defense, high-power electronics, and industrial applications.

By optimizing process performance through its application laboratory, CVD collaborates with clients to refine their manufacturing processes, ensuring they remain at the forefront of technological advancements in their respective industries.

As CVD Equipment Corporation embarks on this new chapter, stakeholders will be keenly observing how the company harnesses its enhanced financial flexibility to drive growth and innovation in its core business areas.

Original press release