Photronics Changes Terms of Align-Rite Deal

Photronics Inc. said it changed the terms of its $114-million acquisition of Burbank-based Align-Rite International Inc. after Align-Rite warned of a low profit. Jupiter, Fla.-based Photronics said it will pay 0.85 of its shares, or $24.23 at Monday’s closing price, for each share of rival Align-Rite. Photronics also would assume about $32 million in Align-Rite debt. Photronics had agreed to pay $23.09 in its own stock for each Align-Rite share. Align-Rite said it expects to report earnings for its fiscal third quarter ended Dec. 31 that are lower than analysts forecast. Both firms make photomasks, which semiconductor makers use to transfer circuit patterns onto computer chips. Align-Rite said it expects to report earnings of 10 cents to 12 cents a share in its fiscal third quarter; analysts had estimated 18 cents to 19 cents. The new terms also would allow Photronics to complete the acquisition without approval from its shareholders. In Nasdaq trading, Photronics shares rose $1.69 to close at $28.50 and Align-Rite fell 13 cents to $20 before trading in its shares was halted.