Montana Firm to Merge With Calnetics Subsidiary

Calnetics Corp., a Chatsworth manufacturer of molded plastic components, said it entered into a tentative agreement in which a Montana maker of health food supplements will be merged into a newly created Calnetics subsidiary.

The merger agreement with Montana Naturals International Inc. in Arlee, Mont., calls for each 4 1/2 shares of Montana Naturals common stock to be converted into one share of Calnetics common stock. On March 31, Montana Naturals had about 4.3 million shares outstanding, and Calnetics had about 2.8 million shares.

Montana Naturals, which specializes in bee products, had a profit of $344,000 on sales of $4.2 million for 1992. Calnetics had a profit of $355,000 on sales of $12.1 million for the nine months ended March 31. The merger requires approval by directors and shareholders of both companies.