CVD Equipment Corporation Strikes Definitive Deal to Sell SDC Division to Atlas Copco for \$16.9 Million

Key Highlights for Investors

• Definitive Agreement Signed: CVD Equipment Corporation (NASDAQ: CVV) has entered into a binding agreement to sell its Stainless Design Concepts (SDC) division to Atlas Copco Group.
• Purchase Price: The transaction is valued at approximately \$16.9 million in cash, subject to customary purchase price adjustments.
• Expected Closing: The deal is anticipated to close in the second quarter of 2026, pending standard closing conditions.
• Net Proceeds: After transaction expenses and taxes, CVD expects to receive about \$15.0 million in net cash, with \$900,000 of that sum held in escrow to cover post-closing adjustments and indemnification obligations.
• Strategic Focus: The divestiture is part of CVD’s previously announced strategy to pursue strategic alternatives and concentrate on its core CVD Equipment business in Central Islip, NY.
• Facility Lease: CVD will retain ownership of its Saugerties, New York facility, leasing it to Atlas Copco for two years post-close.
• Use of Proceeds: The company plans to utilize the proceeds to strengthen its balance sheet, enhance financial flexibility, and support initiatives geared towards creating shareholder value.

Details of the Transaction

On March 24, 2026, CVD Equipment Corporation announced that it has entered into a definitive agreement to sell its Stainless Design Concepts (SDC) division to Atlas Copco Group for a cash consideration of approximately \$16.9 million. The transaction is expected to close in the second quarter of 2026, subject to customary closing conditions.

The arrangement will result in estimated net proceeds of \$15.0 million after deducting transaction expenses and taxes. Importantly, \$900,000 of this amount will be placed in escrow for potential post-closing adjustments and indemnification obligations.

Strategic Rationale and Shareholder Impact

According to Manny Lakios, President and CEO of CVD Equipment Corporation, the decision to sell the SDC division is aligned with the company’s ongoing strategy to focus on its core CVD Equipment business. The divestiture is expected to strengthen the company’s balance sheet and provide additional financial flexibility as CVD continues to evaluate opportunities related to its product lines and facilities.

The company’s goal remains maximizing value for shareholders. The proceeds from this transaction are intended to support ongoing and new strategic initiatives, which may enhance shareholder value over the medium to long term.

Operational and Facility Details

Notably, CVD will retain ownership of its Saugerties, NY facility. As part of the agreement, this facility will be leased to Atlas Copco for at least two years following the transaction close. This arrangement may result in additional recurring revenue streams for CVD and ensures continuity for existing operations at the site.

CVD Equipment Corporation will now be able to concentrate resources on its core competencies, including the design, development, and manufacturing of chemical vapor deposition, thermal processing, physical vapor transport, and gas/chemical delivery control systems. Key markets served by CVD include aerospace & defense (ceramic matrix composites), high power electronics (silicon carbide), EV battery materials (carbon nanotubes, graphene, silicon nanowires), and other industrial applications.

Through its application laboratory, CVD also offers collaborative process optimization with customers, providing further value-added services.

Forward-Looking Statements & Risks

The company cautions that certain information in this release is forward-looking and subject to significant risks and uncertainties, as detailed in its SEC filings. Actual results may differ materially from those anticipated.

Investor Contact

• Richard Catalano, Executive Vice President & CFO
• Phone: (631) 981-7081
• Email: [email protected]

Conclusion

This transaction represents a significant strategic shift for CVD Equipment Corporation, providing substantial liquidity and strengthening its financial position. The sale of the SDC division to a global industrial leader like Atlas Copco is likely to be viewed positively by investors, as it allows CVD to focus on its high-value core businesses and could unlock further shareholder value.

Disclaimer: The above article is for informational purposes only and does not constitute investment advice. Readers should review all SEC filings and consult with their financial advisor before making investment decisions. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially.

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