Fireplace Maker Agrees to Be Acquired

Fireplace Manufacturers Inc. said Friday it has agreed to be acquired by Desa International Inc. for as much as $23.8 million in cash. Principal shareholders of the metal fireplace manufacturer have entered into options to sell their 50% stake in the company to Desa, a closely held Kentucky manufacturer of indoor and outdoor heating and home security products. Desa already owns 8% of Fireplace Manufacturers’ shares. The Santa Ana company’s stock rose 25 cents Friday in over-the-counter trading to close at $4.25 a share. Fireplace Manufacturers’ profit for the first nine months rose 20% to $869,000, while sales fell 13% to $22 million, as the company eliminated its least profitable product lines and stopped selling to its weakest customers.