Engineering and consulting firm PLG Inc. has been acquired in a $7-million deal by Failure Group Inc., the companies announced Monday.
Failure Group is the corporate parent of Failure Analysis Associates Inc., which investigates the causes and prevention of engineering and scientific failures. The 26-year-old company had 1993 revenue of $65.4 million and operates nine U.S. and five international offices from its headquarters in Menlo Park.
PLG, based in Newport Beach, was attractive to Failure Group because of its expertise in quantitative risk analysis, decision analysis, systems engineering, nuclear and power plant engineering and environmental engineering, PLG President B. John Garrick said.
Failure Group will pay $3 million initially for all of PLG’s privately held stock, and as much as $4 million more in the next four years, depending on the company’s performance, Garrick said. He will keep his job, as will all of PLG’s 80 employees.
PLG, founded in 1956, had 1992 revenue of $10.3 million.