Ultrasystems Inc. on Tuesday announced an agreement...

Ultrasystems Inc. on Tuesday announced an agreement to buy Gentec, a San Diego-based maker of microcogeneration systems, as part of the Irvine-based company’s plan to strengthen its foothold in that industry.

Terms of the agreement were not disclosed.

Gentec, which designs, makes and services microcogeneration systems--or small power plants that provide electricity, hot water and air conditioning--for restaurants, hospitals, hotels and other service establishments, is expected to post revenues of $3 million to $5 million for the current fiscal year, according to Phillip J. Stevens, Ultrasystems’ chairman and president.

The mainstay of Gentec’s business has been providing systems to restaurant chains, including Naugles Inc.; W.R. Grace Co., which operates Coco’s Family Restaurants and jojos Restaurants; and Trans-Pacific Restaurants Inc., which operates Jolly Roger Restaurants and Monterey Bay Canners restaurants.

“The acquisition of Gentec will significantly complement and strengthen Ultrasystems’ overall position in the rapidly emerging microcogeneration industry which, we believe, will grow into a multi-billion dollar industry over the next several years,” Stevens said.

Gentec is particularly attractive because of its “unique” communications center in San Diego, which monitors its systems all over the country, Stevens said. Ultrasystems is considering expanding the San Diego center, he said.

According to the agreement, Ultrasystems will merge Gentec with its Micro Cogen Systems Inc., which provides power plants up to 1000 kilowatts. Ultrasystems plans to keep all of Gentec’s 18 employees.