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Cyclops Agrees To Be Acquired By British Company

February 17, 1987 GMT

PITTSBURGH (AP) _ Cyclops Corp. said Tuesday it agreed to be acquired and split in two under a $384 million offer from the British company Dixons Group Ltd.

Separately, a subsidiary of Alleghany Corp. of New York has agreed to pay $110 million cash and assume certain debts to acquire the spucialty steel operations of Cyclops.

Dixons will retain Cyclops’ specialty retailing businesses, which include the 119-store Silo electronics outlets and the 11-store Busy Beaver home improvement stores.

The Dixons cash tender offer of $90.25 per share tops an $80-per-share tender offer from a group led by Stuart A. Rose, chairman of Audio Video Associates Inc. of Dayton, Ohio.

The agreement is contingent on at least 80 percent of Cyclops’ 4.2 million outstanding common shares being tendered and on approval of Dixons’ shareholders.

Alleghany said it would distribute shares of the Cyclops steel and construction businesses to its shareholders and would retain Cyclops as the name of the business. Cyclops will remain headquartered in Pittsburgh.

Alleghany will assu 3/4 e some of debt of the steel and construction operations.

The tw retail chains will be the first American retailing operations for Dixons, which operates three retailing chains in the United Kingdom and also has financial services, real estqte and film-processing divisions. The company reported 1985-86 sales of $1.4 billion.