Coherent Corp. (COHR) shares took a dip on Friday after the company announced the sale of its manufacturing facility in Newton Aycliffe, County Durham, UK. This move is part of Coherent’s plan to optimize its global operations and streamline its business.
The 310,000-square-foot facility, located in Aycliffe Business Park, was acquired by Coherent in 2017 when the company was known as II VI Incorporated. Macquarie Semiconductor and Technology, a division of Macquarie Group, acted as the transaction consultant, while Taylor Wessing provided legal counsel.
Despite the news of the sale, Coherent’s stock has seen impressive growth, gaining over 183% in the past year. This growth can be attributed to the company’s strong performance and its focus on innovative technologies. Investors can gain exposure to Coherent through ProShares Nanotechnology ETF (TINY) and Otter Creek Focus Strategy ETF (OCFS).
Coherent continues to invest in new technologies, recently launching 200 mm silicon carbide epitaxial wafers (SiC epi-wafers) for shipment. Earlier this year, they introduced a next-generation high-power laser sensor designed to support the growing market for high-power applications, promising to reduce measurement times by as much as 500%.
At the time of publication on Friday, Coherent shares were trading down by 2.63% at $89.99.
The company’s decision to sell its UK facility signals its commitment to optimizing its global operations and focusing on key growth areas. Despite the short-term dip in share price, Coherent’s recent performance and continued investment in advanced technologies suggest a positive outlook for the company.
