LightPath Technologies agreed to sell its China subsidiary, LightPath (Zhenjiang) Optical Instrumentation Co., to Hengtu Optical Technology, a management-led buyer, for $4.5 million payable over five years, with closing anticipated in the coming weeks. The sale completes LightPath’s transition to a fully Western-aligned manufacturing footprint and will leave the company without any China operations. The buyer will continue to supply LightPath for U.S. and European customers at cost-plus pricing, subject to a five-year exclusive supply arrangement and various control restrictions during the repayment period. LightPath will retain board observer rights and license its trademarks and technology to support ongoing operations post-closing. The transaction effectively deconsolidates roughly $4.5 million in annual China revenue, while maintaining continuity of supply to LightPath’s Western customers as installments are repaid. Industry coverage frames the deal as positioning LightPath as a secure, NDAA-compliant optics supplier for defense and commercial markets.