Coherent Corp. entered into a definitive agreement to sell its materials processing tools product division to Bystronic AG, a global leader in sheet metal processing technology. The division, based near Munich, Germany, employs roughly 400 employees and generates about $100 million in annual sales.
The transaction is part of Coherent’s portfolio review, which focuses on high‑growth, high‑margin segments such as networking and lasers. By divesting the materials division, Coherent aims to streamline operations and accelerate its transformation under CEO Jim Anderson.
Proceeds from the sale will be used to reduce Coherent’s debt, which stood at approximately $3.9 billion at the end of fiscal 2025. The reduction is expected to be immediately accretive to earnings per share.
The deal is expected to close in early 2026, subject to customary closing conditions. The sale price was not disclosed in the announcement.
Coherent’s Q4 and full‑year fiscal 2025 results, released on August 13, 2025, showed record revenue of $1.53 billion for the quarter and $5.81 billion for the year, with a non‑GAAP EPS of $3.53. The materials division accounted for roughly 21% of total revenue in FY24 Q4.
Bystronic AG reported a trailing 12‑month revenue of $716 million as of June 30, 2025, and a market capitalization of $711 million. The acquisition expands Bystronic’s presence in medical devices and semiconductor markets and strengthens its laser technology portfolio.
Coherent’s CEO Jim Anderson, who took the helm in June 2024, has emphasized the company’s focus on AI data centers and communications, and the divestiture aligns with his strategy to concentrate on core, high‑growth businesses.
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