Coherent Sells Unit Dedicated to Tools for Materials Processing to Bystronic
Coherent has entered into a definitive agreement to sell its product division that makes and sells tools for materials processing to Bystronic, a provider of sheet metal processing technology. Proceeds from the sale, expected to close early next year, will be used to reduce debt. Terms of the deal were not disclosed.
Based near Munich, Coherent’s tools for materials processing business unit employs approximately 400 people and generates approximately $100 million in annual sales. Bystronic’s acquisition of the unit will help the company expand into additional attractive growth markets, such as medical devices, semiconductors, and general manufacturing. Additionally, new laser applications, such as micro material processing, marking, labeling, and drilling will be added to the Bystronic portfolio.
Coherent's Tools for Materials Processing division, based in Gilching, Germany, will be integrated into Bystronic. Courtesy of Coherent.
With this acquisition, Bystronic will also obtain the rights of the Rofin brand and will integrate this business into a new Bystronic Rofin business unit. Bystronic Rofin’s versatile laser technologies will enable the processing of a wide variety of materials – from metal, glass and ceramics to polymers and organic materials. In addition to synergies generated in procurement, the acquisition will leverage know-how in research and development.
The transaction stems from Coherent’s portfolio review process and furthers the company’s strategy to concentrate on core growth markets and products, said Coherent CEO Jim Anderson. That process saw the sale of Coherent’s Aerospace and Defense Business earlier this year. Anderson said at the time that efforts would focus on building the company’s data center and communications segment, as well as other higher-margin photonics technologies.
Debt remains notable for Coherent, with long-term debt standing at close to $3.5 billion per the company’s fourth quarter results posted in August. Much of that debt stems from the acquisition of Coherent while the company was operating as II-VI.
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