Unit Instruments to Be Acquired by U.S. Filter

Unit Instruments Inc., which makes parts for semiconductor manufacturing equipment, said Thursday it has signed an agreement to be acquired by U.S. Filter Corp. in a stock transaction valued at $50.5 million.

Palm Desert-based U.S. Filter will pay $12.62 in stock for each share of Unit--a 40% premium over Thursday’s closing price of $9 a share. The agreement was announced after the U.S. markets closed.

Unit, based in Yorba Linda, will become a subsidiary of U.S. Filter’s USF Kinetics group.

The combination will permit U.S. Filter to offer customers more complete semiconductor production systems and to lower the cost of operating semiconductor manufacturing plants, said Michael J. Doyle, Unit’s president and chief executive.

The companies said they expect to complete the sale in September, after receiving regulatory approval. Unit shareholders also must approve the deal.

U.S. Filter shares rose 68 cents Thursday to close at $30.19 on the New York Stock Exchange, while Unit shares rose 13 cents to close at $9 in Nasdaq trading. Unit shares surged 32% on Monday after the company announced that it had entered negotiations to be acquired by an unnamed firm.

Unit sells its gas flow measurement and control devices worldwide and has support and service centers throughout North America, Europe and the Pacific Rim. USF Kinetics, acquired earlier this year by U.S. Filter, designs, makes and installs process systems used in semiconductor, biotech and pharmaceutical manufacturing.