In an all-stock deal valued at about $14.8 million, San/Bar Corp. said Monday that it will be acquired by Resdel Industries after spinning off its Break-Free division.
The merger would give San/Bar shareholders one share of the new Break-Free Corp. and one share of Resdel for each share of San/Bar common stock.
San/Bar closed Monday at $7.75 per share, up 75 cents for the day. The company has 2.1 million common shares outstanding. Resdel common closed at $7, up 25 cents for the day. Both stocks are traded over the counter.
Under terms of the deal, Resdel would operate Irvine-based San/Bar as a wholly owned subsidiary while Break-Free, which manufactures specialized lubricants and cleaners, would become a separate, publicly held company operated by San/Bar founders Barry Hallamore, 48, and his father, Lloyd Hallamore, 70. Break-Free, headquartered in Santa Ana, has 30 employees and expects 1987 sales of about $4 million, said Barry Hallamore, who will serve as chairman of the new company.