Wahlco Environmental Systems Inc., a Santa Ana air pollution control company, said Wednesday that Pacific Diversified Capital Co. has sold its 81% stake in Wahlco to Wexford Capital Corp. for $5 million.
Included in the deal was $25 million in debt owed by Wahlco to Pacific. A total of $4.9 million of the debt will remain outstanding and be owed to Wexford. In addition, Wexford, a Greenwich, Conn.-based general partner of several investment partnerships, has provided a commitment of $2 million in secured working-capital financing to Wahlco.
Wahlco said all of its directors, except Henry N. Huta, president and chief executive, resigned and were succeeded by Wexford nominees. Huta was named to the additional post of chairman.
C. Stephen Beal, group president and chief executive of Wahlco Engineered Products, was named a director.