CVD signs contract to buy facility in New York for USD13.9m.
M2 EQUITYBITES-October 31, 2017-CVD signs contract to buy facility in New York for USD13.9m
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CVD Equipment Corporation (NASDAQ:CVV) disclosed on Tuesday that it signed a contract to buy a 180,000 sq ft facility in Central Islip, New York for USD13.9m.
This facilitly will serve as headquarters for the company's subsidiary, CVD Materials Corporation. This purchase price will be 75% funded by a commercial long-term mortgage and with state and local incentive grants, expected to close within 90 days. Also, the company plans to sign sub-leasing agreements with third parties for about half of the facility, until full capacity is needed by it. The new facility is withing walking from its existing Central Islip headquarters and will provide the manufacturing, engineering, process development and administration for CVD Materials' product lines.
In addition, the company mentioned that it acquired the assets of Tantaline in Nordberg, Denmark in December of 2016, which currently provides corrosion resistant Tantalum coatings on stainless steel and other metals. In mid-2018, Tantaline CVD will begin to provide this service to North America from new materials facility. The deposition equipment being manufactured by CVD for the new facility will allow processing of larger parts and further development of corrosion and wear resistant coatings.
Also, the company has received orders for carbon composite material for a medical application and another for a substrate material to be used in the electronics industry. The equipment for both these applications is being developed and manufactured by it and will be used in the new materials facility.
CVD Equipment designs, develops and manufactures a variety of chemical vapour deposition, gas control and other state-of-the-art equipment and process solutions used to develop and manufacture materials and coatings for research and industrial applications. Its wholly owned subsidiary CVD Materials Corporation provides advanced materials and metal surface treatments and coatings
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|Publication:||M2 EquityBites (EQB)|
|Date:||Oct 31, 2017|
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