Swedlow Expected to Agree to Be Bought : Unidentified Company Offers to Acquire Aircraft Parts Maker

Directors of Swedlow Inc., a Garden Grove aircraft parts maker, are expected to agree today to be acquired by a thus far publicly unidentified company, it was learned Tuesday.

Swedlow officials declined to discuss the pending deal, saying only that the directors were scheduled to meet today in Los Angeles to consider an acquisition proposal.

However, others close to the company said that a definitive announcement detailing the agreement would be made following the session.

Company insiders, including founder and Chairman David Swedlow, hold more than 53% of the firm’s shares and were said to be in favor of the deal. The purchase, which would involve all outstanding shares, would require stockholder approval.

David Swedlow, 74, started the company in 1946 and presided over it as it grew into a medium-sized firm that now has annual sales of about $40 million and 750 employees in its Garden Grove plant. The company makes windshields, canopies and other acrylic products for military and commercial airplanes.

Earlier this year, Swedlow formed a partnership with Dow Corning Corp. to license a no-scratch surface for plastics. That partnership has fueled speculation in the investment community that Dow Corning is Swedlow’s potential buyer, but company officials refused to comment on the rumors.

Swedlow common stock rose 50 cents in over-the-counter trading Tuesday to $23 bid.

In its fiscal first quarter, ended June 30, Swedlow reported that net income increased 38%, to $354,000 from $257,000 a year earlier. Sales were ahead 31%, to $13.5 million from $10.3 million. In fiscal 1985 Swedlow reported net income of $1.7 million, up from $1.1 million the prior year. Revenues fell to $39.3 million from $39.8 million.