Outside Investor May Purchase Wahlco Environmental Systems
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SANTA ANA — After a year in which its losses nearly equaled its revenue, Wahlco Environmental Systems Inc. said Friday that it may be purchased by an outside investor.
Executives at the pollution-controls company said a potential investor, whom it declined to identity, has provided a $5-million line of credit that is secured by the assets of the company. The lender has an option to acquire the company.
Wahlco also reported that it lost $66.1 million, or $3.75 a share, last year, much of it from a $50.6-million accounting write-down stemming from its acquisition by Pacific Diversified Capital Co. in San Diego. It lost $10.9 million, or 62 cents a share.
Wahlco’s revenue fell 15% to $69.9 million last year from $82.1 million the previous year.
The company’s loss last year was attributed to declining demand for its pollution-control equipment for coal-fired electrical plants.
Founded in 1972, Wahlco has 453 employees worldwide, including 75 in Orange County.
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