U.S. Filter Cuts Purchase Price for Unit Instruments

U.S. Filter Corp., the No. 1 water-treatment company, cut its purchase price for computer chip-equipment parts maker Unit Instruments Inc. to $44 million from $50.5 million amid a weak semiconductor market.

U.S. Filter will pay $11.03 in stock for each share of Unit, Unit said. That’s down from $12.62 a share in the original purchase agreement from July 2. Yorba Linda-based Unit Instruments had about 4 million shares outstanding as of March 31.

U.S. Filter wants Unit so its USF Kinetics Group can offer customers more complete semiconductor-production systems and cut the cost of making chips. Unit said July 17 that it would fire 42 employees, or about 15% of its 308-employee work force, as economic turmoil in Asia and weak demand for personal computers have hurt the computer-chip industry.

“The new price better reflects the prospects for a combined unit,” said Kurt Gilson, senior vice president of USF Kinetics.

The companies expect to complete the sale in October, after getting regulatory approval.

Shares of U.S. Filter, based in Palm Desert, fell $1.50 to $26, while Unit’s stock was off 13 cents a share, closing at $9.25.