Thermco Systems to Be Purchased by Silicon Valley Group of San Jose

Allegheny International said it plans to sell an Orange-based subsidiary, Thermco Systems, to a Silicon Valley firm for an undisclosed amount of cash.

Thermco, which has 420 employees, manufactures equipment used to make film layers found on silicon wafers and other semiconductor products.

The buyer, Silicon Valley Group of San Jose, makes equipment that prepares the silicon wafers in semiconductors to receive the film layers. Its 1987 sales were about $39 million.

Terms of the transaction were not disclosed. Anthony R. Muller, Silicon’s vice president for finance, said it will be a cash deal with no debt financing involved.

The sale, which must be approved by both companies and the federal government, will leave the existing management at Thermco intact, the two companies said. Thermco President Richard Pinto is expected to remain with the firm.

Muller said the merger will not affect Thermco’s employees.

The planned deal is Allegheny’s second attempt this year to sell the Orange County firm. In May, Pittsburgh-based Allegheny attempted to sell Thermco to its chief competitor, BTU Engineering Corp. of North Billerica, Mass. The deal fell through after the Department of Justice raised objections that the merger would violate federal antitrust regulations.

Earlier this year, Allegheny filed for protection from creditors under federal bankruptcy laws. Its attempts to sell Thermco are part of a plan to divest all but its consumer goods companies. Allegheny is best known for its Oster and Sunbeam brand appliances.