Zero Corp. Agrees to Buy Contempo

Zero Corp., the Burbank manufacturer of enclosures and other accessories for the electronics industry, has signed a letter of intent to purchase Contempo Engineering, a Glendale company that makes air-conditioning systems for computer rooms.

Terms of the stock transaction were not disclosed. The acquisition should be completed by late summer, according to James Osterman, a Zero vice president.

Contempo President Peter Manes, 63, said he has been looking for someone to take over the business. He said he expects to stay with the company for a year, then retire.

Zero reported sales of $117 million for its fiscal year ended March 31. Contempo reported annual sales of $7 million.

Contempo will retain its name and act as a wholly owned subsidiary, the companies said.