Unit Vanishes From Nasdaq in a Stock Swap

Shareholders of Yorba Linda-based Unit Instruments Inc. on Friday approved the company’s acquisition by a subsidiary of United States Filter Corp., in a stock swap worth about $40 million. The deal took effect immediately, and Unit’s stock was removed from the Nasdaq market Friday at the close of business. Unit, which becomes a wholly owned subsidiary of U.S. Filter and part of its USF Kinetics group, makes valves, controllers and gas delivery products used in the manufacture of semiconductors and in other industrial processes. U.S. Filter, a leading manufacturer of filtration products for water and other liquids, originally agreed to acquire Unit in September in a stock deal worth about $51 million. But U.S. Filter’s stock has fallen in a volatile market, reducing the value of the merger. U.S. Filter shares closed Friday at $23, down 50 cents for the day on the New York Stock Exchange, while Unit shares ended the day at $10, up 6 cents. Most of Unit’s 250 employees are expected to make the shift to U.S. Filter.