CVV · CVD Equipment Corporation

CVD Equipment Corporation finalized the divestiture of its Stainless Design Concepts (SDC) division on April 1, 2026, selling substantially all related assets to a subsidiary of Atlas Copco Group for $16.9 million in cash, excluding other company assets. This transaction, governed by an Asset Purchase Agreement dated March 23, 2026, includes standard representations, warranties, covenants, and indemnification provisions, with $900,000 escrowed for potential adjustments and obligations. The company retains its Saugerties, New York facility, now leased to the buyer for two years at $182,750 initial annual rent, providing ongoing revenue reflected in pro forma statements. Pro forma financials as of December 31, 2025, illustrate the impact: cash rises from $8.7 million to $24.7 million, total assets to $41.5 million, and stockholders' equity to $37.9 million, driven by $15.9 million net cash inflow after escrow and a $13.1 million pro forma gain on disposition (net of $0.6 million taxes and $0.9 million costs). Operationally, removing SDC reduces pro forma 2025 revenue to $18.2 million from $25.8 million and widens net loss to $(3.1) million, with similar effects for 2024, highlighting SDC's contribution to historical results. CVD plans to deploy net proceeds of about $15 million toward financial flexibility and shareholder value initiatives, as stated in the April 2 press release. Full agreements will appear in the upcoming 10-Q for Q1 2026.