CVD Equipment completes sale of its SDC division

CVD Equipment (CVV) announced that it has completed the sale of the Company’s Stainless Design Concepts, SDC, business division. The previously announced transaction was completed for a purchase price of approximately $16.9 million in cash, subject to certain purchase price adjustments. CVD expects to use the proceeds from the transaction to enhance its financial flexibility and support strategic initiatives aimed at creating shareholder value. The net cash proceeds, after payment of transaction expenses and taxes are approximately $15.0 million. Of this amount, $900,000 will be held in escrow to satisfy potential post-closing adjustments and indemnification obligations in accordance with the terms of the asset purchase agreement. 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.