CVD Equipment (NASDAQ: CVV) inks $16.9M cash deal to divest SDC unit
Rhea-AI Filing Summary
CVD Equipment Corporation has signed a definitive agreement to sell all or substantially all assets of its Stainless Design Concepts (SDC) division to the Atlas Copco Group for $16.9 million in cash, subject to purchase price adjustments. About $900,000 of this amount will be held in escrow for post-closing adjustments and indemnification obligations.
The company expects net cash proceeds of approximately $15.0 million after expenses and taxes. CVD will retain ownership of its Saugerties, New York facility and lease it to the buyer for an initial term of two years after closing. Management states the divestiture aligns with previously announced strategic alternatives, is intended to strengthen the balance sheet, and will let CVD focus on its core equipment business in Central Islip, New York. The transaction is expected to close in the second quarter of 2026, subject to customary closing conditions.
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Insights
CVD is monetizing a division to refocus on its core business and add cash.
CVD Equipment Corporation plans to divest its SDC division to Atlas Copco for a cash purchase price of $16.9 million, with expected net proceeds of about $15.0 million after expenses and taxes. The buyer will place $900,000 in escrow to cover post-closing and indemnity items.
Management frames the sale as part of previously announced strategic alternatives, aiming to concentrate on the core CVD equipment operations in Central Islip while retaining and leasing the Saugerties facility for an initial two-year term. This suggests a pivot away from SDC while maintaining some real estate income.
The added cash is intended to strengthen the balance sheet and provide “additional financial flexibility” for evaluating opportunities in the remaining product lines and facilities. The transaction is expected to close in Q2 2026, subject to customary closing conditions, so subsequent disclosures around use of proceeds and any follow-on strategic actions will further clarify long-term impact.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
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| Item 1.01. | Entry Into Material Definitive Agreement |
On March 23, 2026, CVD Equipment Corporation, a New York corporation (the “Company”), entered into an Asset Purchase Agreement (the “Asset Purchase Agreement”) with the Atlas Copco Group based in Nacka, Sweden (the “Buyer”)
Under the Asset Purchase Agreement, the Company has agreed to sell to the Buyer all or substantially all of the assets related to the Company’s Stainless Design Concepts (“SDC”) business division and excluding any and all other assets of the Company and its Affiliates (as defined in the Asset Purchase Agreement), and the Buyer will assume certain specified liabilities, in each case as set forth in the Asset Purchase Agreement (collectively, the “Transaction”).
The Company will retain ownership of its Saugerties, New York facility, which will be leased to the Buyer for an initial term of two years following the closing of the Transaction.
The aggregate consideration payable to the Company in connection with the Transaction will be an amount equal to $16,900,000 (the “Purchase Price”), subject to a Purchase Price Adjustment (as defined in the Asset Purchase Agreement).
At the closing of the Transaction (the “Closing”), the Buyer will place $900,000 of the Purchase Price in escrow to cover post-Closing adjustments and indemnification obligations under the Asset Purchase Agreement. The escrow will be released as described in the Asset Purchase Agreement.
The Asset Purchase Agreement contains customary indemnification provisions pursuant to which the parties agree to indemnify each other for certain matters, including, among other things, breaches of certain representations, warranties and covenants in connection with the Transaction.
The Asset Purchase Agreement contains customary representations, warranties and covenants of the parties, including, among other things, covenants regarding the operations of SDC between signing and the Closing, delivery of consents and approvals, and employee-related matters. The Closing is also subject to customary closing conditions, including the receipt of necessary third-party consents, the absence of any legal restraint prohibiting the transaction, and the satisfaction of other conditions customary for transactions of this nature.
The Buyer and the Company are required to use their reasonable best efforts to consummate the Transaction. The Closing is expected during the second quarter of 2026.
On March 23, 2026, the Company issued a press release announcing the Transaction. A copy of the press release is filed as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
| Item 9.01. | Financial Statements and Exhibits |
(d) Exhibits
| Exhibit No. | Description | |
| 99.1 | Press Release dated March 24, 2026 | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Date: March 24, 2026
| CVD EQUIPMENT CORPORATION | ||
| By: | /s/ Richard Catalano | |
| Name: | Richard Catalano | |
| Title: | Executive Vice President, Chief Financial Officer, Secretary and Treasurer | |
Exhibit 99.1
 |
enabling tomorrow’s technologies™ | |
| 355 South Technology Drive, Central Islip, New York 11722 | T 631.981.7081 | info@cvdequipment.com | ||
CVD Equipment Corporation Announces Definitive Agreement for the Sale of its SDC Division
CENTRAL ISLIP, N.Y., (Business Wire) – March 24, 2026 - CVD Equipment Corporation (NASDAQ: CVV) today announced that it has entered into a definitive agreement under which the Company’s Stainless Design Concepts (“SDC”) business division will become part of Atlas Copco Group. The purchase price amounts to approximately $16.9 million in cash, subject to certain purchase price adjustments. The transaction is expected to close during the second quarter of 2026, subject to customary closing conditions.
Manny Lakios, President and Chief Executive Officer of CVD Equipment Corporation, stated, “This transaction, which is aligned with our previously announced decision to pursue strategic alternatives for our company, will allow us to focus on our core CVD Equipment business located in Central Islip, New York. The divestiture will strengthen our balance sheet and provide additional financial flexibility as we continue evaluating opportunities for the CVD Equipment business, its product lines, and our two facilities. Our goal remains maximizing value for our shareholders.”
The Company expects to use the proceeds from the transaction to enhance financial flexibility and support initiatives aimed at creating shareholder value. The net cash proceeds after payment of transaction expenses and taxes are approximately $15.0 million, of which $900,000 will be held in escrow to cover post-closing adjustments and indemnification obligations under the agreement.
CVD will retain ownership of its Saugerties, New York facility, which will be leased to the acquiring company for an initial term of two years following the closing of the transaction.
About CVD Equipment Corporation
CVD Equipment Corporation (NASDAQ: CVV) designs, develops, and manufactures a broad range of chemical vapor deposition, thermal processing, physical vapor transport, gas and chemical delivery control systems, and other equipment and process solutions used to develop and manufacture materials and coatings for industrial applications and research. Our products are used in production environments as well as research and development centers, both academic and corporate. Major target markets include aerospace & defense (ceramic matrix composites), silicon carbide (SiC) high power electronics, and EV battery materials (carbon nanotubes, graphene, and silicon nanowires) and industrial applications. Through its application laboratory, the Company allows customers the option to bring their process tools to our laboratory and to work collaboratively with our scientists and engineers to optimize process performance.
Certain information in this press release contains statements that are forward-looking in nature and involve certain significant risks and uncertainties. Actual results and performance could differ materially from such forward-looking information. The Company’s Securities and Exchange Commission filings identify many such risks and uncertainties. Any forward-looking information in this press release is qualified in its entirety by the risks and uncertainties described in such Securities and Exchange Commission filings.
CVD Equipment Corporation Contact:
Richard Catalano, Executive Vice President & CFO
Phone: (631) 981-7081
Email: investorrelations@cvdequipment.com
Filing Exhibits & Attachments
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