Scovill Backs Sweetened Bid by Belzbergs

WATERBURY, Conn. —  Scovill Inc. has reached a definitive agreement to be acquired by First City Properties Inc., a concern controlled by the Belzberg family of Canada, in a deal worth about $520 million, the companies say.

The companies said Sunday that their boards had each approved a sweetened tender offer for Scovill of $42.50 per share of common stock.

The merger agreement comes 2 1/2 weeks after the board of directors of Scovill had rejected a $35-a-share offer by First City. Scovill has about 12.3 million shares outstanding.

Scovill’s board has recommended that its stockholders now “tender their shares pursuant to the amended offer” by First City.

Consumer Products

Scovill, which manufactures a range of consumer products, including Hamilton Beach small appliances and Yale locks, as well as housing products, apparel fasteners and pneumatic controls, reported a profit of $27.4 million in 1983 on revenue of $742.6 million. For the first nine months of 1984, Scovill reported a profit of $24.6 million on revenue of $616.7 million.

According to a joint statement, the companies “have agreed that as soon as practical following the expiration of the amended tender offer, a subsidiary of First City will be merged into Scovill.”

William F. Andrews, chairman of Scovill, said he is in favor of the First City offer because “it represents not only a fair offer to the stockholders but also provides an opportunity for the management of Scovill to continue to manage the company,” according to the prepared statement.

The offer from First City will expire at midnight Jan. 18 unless extended, and withdrawal rights expire at midnight Jan. 11.

First City also announced that it intends to begin purchasing shares once withdrawal rights expire. The Belzbergs currently hold 765,000, or 6.2%, of the 12.3 million Scovill shares outstanding.