Shares of CVD Equipment Corp. climbed Tuesday after the Central Islip company said it is buying a 180,000-square-foot facility near its headquarters for $13.9 million as part of an expansion plan for its anti-corrosion coatings business.
State officials said the expansion would create 115 new jobs.
CVD stock rose 4.9 percent to close Tuesday at $11.61 following the release on Monday after the market close of a government filing outlining the deal. The stock has climbed about 40 percent in the past 12 months.
The company said the acquisition of the building, “a five-minute walk” from its Central Islip headquarters, followed evaluation of bids from Pennsylvania, Connecticut, New Jersey, South Carolina and other locations within New York seeking to land the facility, which will serve as headquarters for its CVD Materials Corp. subsidiary.
CVD will receive $2.75 million in state incentives, Howard Zemsky, chief executive of Empire State Development, the state’s primary business-aid agency, said Tuesday in an e-mailed statement.
The Town of Islip is providing a package of tax abatements over 14 years worth more than $2 million, William Mannix, executive director of the town’s Industrial Development Agency, said in a phone interview.
CVD makes equipment used to develop and manufacture materials and coatings used in aerospace, medical implant, semiconductor, solar cell and other applications. Customers include NASA, Intel, Honeywell and Brookhaven National Lab.
The company expects to close on the real estate deal with seller Creative Bath Products Inc., based in Central Islip, within 90 days.
CVD reported having 173 employees as of Dec. 31, primarily in Central Islip and upstate Saugerties. In an email, chief financial officer Glen Charles said the company planned to hire engineers, scientists, technicians and office personnel in connection with the expansion.
In December 2016, CVD acquired assets and intellectual property of Tantaline A/S, a Denmark-based provider of anti-corrosion coatings. The company said that in mid-2018 it will begin offering the coatings in North America through the new facility, where manufacturing deposition equipment will allow processing of larger parts.
“The new facility for CVD Materials will help diversify our corporate product offerings and provide for less cyclicality in order levels,” Leonard Rosenbaum, chairman, president and chief executive of CVD Equipment Corp., said in a statement.
CVD Equipment moved its headquarters in 2011 from Ronkonkoma to Central Islip.
The company posted a 46 percent decline in 2016 sales to $21 million, but it almost tripled revenue in the quarter ended June 30 from $3.7 million in the 2016 period to $10.8 million.