Northampton Inc., a Salt Lake-based business acquisition company, has entered an agreement in principle to acquire all issued and outstanding shares of Mini World Inc., a company started in 1971 that manufactures and sells children's dresses.

The price will be $2.9 million in cash, subject to certain adjustments, according to company officials.Completion is subject to arrangement of at least $2 million in debt financing by Northampton, compliance with various representations and warranties, the execution of consulting and non-competition agreements by the current principal executive officer of Mini World Inc., certain third-party consents and other minor matters.

Northampton officials also announced they have purchased, for $1 per share, some 200,000 shares, or 57 percent, of the issued and outstanding restricted common stock of Merlin & Co., a privately help corporation whose principal assets are Merlin Securities, which is being reactivated as a licensed securities broker-dealer.

As part of the transaction, Northampton also agreed to purchase up to 101,000 additional shares of common stock at $1 per share to preserve its greater than 50 percent interest in Merlin & Co.