Wahlco Buys Marketer of Power Plant Gear

Wahlco Environmental Systems of Santa Ana said Tuesday it bought a Swiss marketer of power-plant equipment called Metroflex and one of its suppliers, the British concern Pentney Group.

The price for both companies totaled $2.1 million, said Wahlco, which makes equipment used to reduce air pollution by electric utilities. Wahlco is owned by Pacific Diversified, a subsidiary of San Diego Gas & Electric that runs the utility’s unregulated businesses.

The deal includes an earnout agreement in which the former owner of the two acquired companies will receive a portion of any profits over the next five years, up to $2.5 million.

In addition, Wahlco agreed to take over the two companies’ debt, an amount that wasn’t disclosed.

Metroflex, based in Baar, is primarily a marketing company that sells diverters for moving gas flows around power plants.

Pentney Group, based in Chesterfield, England, makes products for Metroflex and provides fans and other equipment to public utilities.

The two companies reported nearly $20 million in revenue last year.

Wahlco said the purchase of these two companies and Teddington Bellows, a Welsh maker of power plant equipment bought a few days earlier, gives Wahlco a better foothold in the European market.

Wahlco, based in Santa Ana, earned $9 million last year on revenue of $57.7 million.

The new acquisitions will operate primarily out of Pentney Group’s offices.