M&A
LightPath keeps its former China unit as a supplier for five years
The divested unit will keep supplying LightPath's commercial business, with the markup LightPath pays rising as the buyer pays off the $4.5 million purchase price.
Optics and imaging supplier LightPath Technologies closed the sale of its Zhenjiang, China, subsidiary to Hengtu Optical Technology on Oct. 30, 2026.1–2 It announced the closing Nov. 5.1
The markup rises with each $1 million of principal the buyer pays
LightPath closed the sale of its Zhenjiang subsidiary
During the five-year Exclusive Supply Term the subsidiary keeps supplying LightPath, at cost plus 10% after closing
Upon full payment of the principal the supply price is fixed at cost plus 30%
Source: LightPath Forms 8-K, July 23 and November 5, 2026. As of November 5, 2026.
Sources
The subsidiary will continue supplying LightPath for five years, becoming a third-party vendor for products serving LightPath's commercial customers in the U.S. and Europe.2–3 The agreement links what LightPath pays for those products to the buyer's progress in paying for the business.3
The $4.5 million cash purchase price is due in full within five years of closing. The buyer must pay at least $500,000 annually, plus financing interest equal to 4% of the principal amount of each installment.3
LightPath initially pays cost plus 10% for products from the unit. The markup rises with each $1 million of principal paid and is fixed at cost plus 30% when the principal is paid in full.3
The unit's revenue from third-party customers, excluding LightPath, averaged approximately $4.5 million annually. That average covers fiscal 2025 and 2026; this revenue leaves LightPath's consolidated results following closing.2
LightPath president and chief executive officer Sam Rubin said defense primes and public safety agencies want to know where their optics are made and who owns the facilities. He said the company believes its manufacturing footprint positions it well for programs requiring non-China sourcing.2
The sale ends LightPath's ownership of its China operations while preserving a supply relationship for its commercial business.2 Collecting the purchase price and maintaining that supply depend on the buyer's performance; LightPath identifies failure to meet payment or supply obligations as a risk.2–3
Sources (3)
- LightPath: Form 8-K, Nov. 5, 2026 www.sec.gov
- LightPath: Completes Divestiture of China Operations (Exhibit 99.1, Nov. 5, 2026) www.sec.gov
- LightPath: Form 8-K, July 23, 2026 www.sec.gov