Wahlco Agrees to Acquire Two European Firms

SANTA ANA —  Wahlco Environmental Systems Inc., a manufacturer of air pollution control equipment, said Wednesday that it has agreed to acquire two European companies in separate transactions for a combined price of about $7 million.

Wahlco, based in Santa Ana, said it has signed letters of intent to acquire Metroflex Corp. of Baar, Switzerland, and the Pentney Group of Chesterfield, England.

Henry Huta, Wahlco’s president and chief executive, said the two European companies fit strategically with one of the company’s current businesses operated by a Lewiston, Me., subsidiary, Bachmann Cos.

“Bachmann’s European, Asian and Middle East products can be integrated into Metroflex’s existing international marketing organization and Pentney’s English manufacturing facilities,” Huta said in a statement.

Those factors are “especially significant,” he said, in light of the planned unification of the European Economic Community nations in 1992, which will remove trade barriers between countries in Western Europe.

Metroflex supplies gas flow diverters and dampers for power plant exhaust systems, a business similar to one operated by Wahlco. Metroflex sells its products mainly in Europe, Southeast Asia and the Far East, with limited sales in the United States.

The Pentney Group manufactures some products for Wahlco and also provides industrial and utility fan service, hydraulic piping and other equipment.

Wahlco and its subsidiaries had 1990 revenue of $57.7 million.

The Pentney Group and Metroflex had combined 1990 revenue of $20 million, Wahlco said.

If the deal is completed, Wahlco said, Metroflex and Pentney will continue to operate independently.