Matthews Tentatively OKs Purchase of Keylite

Matthews Studio Equipment Group of Burbank said it tentatively agreed to acquire Keylite Production Services Inc., a big competitor of Matthews’ subsidiary, Hollywood Rental Co.

Matthews Studio, which makes, sells and rents equipment to the film industry, said it would acquire all of Keylite’s outstanding stock in exchange for 1.4 million restricted shares of Matthews. The transaction requires execution of a definitive agreement, Matthews said.