Powertec Enters British Venture

Powertec has become a partner in a new British company that will make power supplies for European customers.

Chatsworth-based Powertec will initially own 19% of Greendale Power, which will be based in the Sheffield area. The remaining 81% will be owned by former employees of the Crystalate Group, which owned a power supply business in Sheffield called Greendale Electronics that is no longer operating.

Powertec President Emmett Bradley said his company wants eventually to buy all of Greendale Power. For now, he said, it will limit its stake so that Greendale’s financial results can be kept separate from its own. If Powertec owned 20% or more of the new venture, accounting regulations would require it to subtract Greendale’s losses from its own earnings when reporting its financial performance.

Powertec is loaning Greendale 100,000 British pounds, or about $140,000 at current exchange rates. In return, the company is receiving securities that could be converted by August, 1990, into enough stock to increase its stake in Greendale to 80%.

Separately, Powertec also disclosed it has completed a final settlement of a lawsuit over its purchase of Windham, N. H.-based Semiconductor Circuits. Powertec had alleged that the value of the company’s assets was overstated when it bought the firm in November.

Powertec will receive $405,000 and no longer will be required to issue stock to Semiconductor Circuits’ former owner and chairman, Paul J. LaBrie, based on the unit’s performance.

Powertec makes products that convert electricity from alternating current to direct current for use in minicomputers and telecommunications equipment.