Deposition Technology Sells Unit to Brunswick

Brunswick Corp. said Wednesday that is has bought Deposition Technology’s advanced technology division, which sells its thin-metal film application process to military and aerospace firms, for an undisclosed price.

The division will become part of Skokie, Ill.-based Brunswick’s defense division, the second largest of Brunswick’s eight divisions.

The sale “clearly demonstrates the viability of (Deposition Technology’s) technology that’s been under development here for seven years,” according to Richard L. Burns, Deposition Technology chairman and chief executive.

Burns, a founder of the firm, was chairman and chief executive of Nucorp Energy, the once high-flying San Diego-based oil and gas firm that in 1982 filed to reorganize under Chapter 11 of the U.S. Bankruptcy Code, having suffered from a depressed energy market and $615 million in debt.

Burns was later sued by the Securities and Exchange Commission. Last fall, charges were dismissed that he persuaded executives of Nucorp subsidiaries to buy stock in the parent company.

He still faces allegations that he produced fraudulent financial statements by pre-billing revenue.

Brunswick will operate its new subsidiary in Deposition Technology’s existing facilities in the Miramar area, according to Brunswick spokesman Ross Stemer.

“The intention is to utilize the cadre of engineering people already in place in San Diego,” he said.

About 75% of Deposition Technology will remain intact, according to officials.

Deposition Technology’s work involves “sputtering,” a process for applying thin metal films on substrates used for high-technology aerospace companies.

Brunswick services worldwide markets in the marine power, recreation and technical fields. Its defense division has plants in six cities, including Costa Mesa.

Brunswick last year reported a 42% increase in net income to $94.2 million on revenue of nearly $1.5 billion, up 20%.