# 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. Published 2026-11-06 by TGOs. Canonical: https://tgos.io/news/2026/11/06/lightpath-keeps-its-former-china-unit-as-a-supplier/ 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 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.[3] 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.[3] 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.[2] 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.[2] He said the company believes its manufacturing footprint positions it well for programs requiring non-China sourcing.[2] ## Why it matters 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 1. LightPath: Form 8-K, Nov. 5, 2026 2. LightPath: Completes Divestiture of China Operations (Exhibit 99.1, Nov. 5, 2026) 3. LightPath: Form 8-K, July 23, 2026