Irvine’s Watson General Headed for Colorado

Watson General Corp. said Wednesday that it will sell its two subsidiaries, close its Irvine headquarters and move remaining operations to Colorado under a new corporate name.

Watson, a maker of computer products that monitor underground petroleum tanks for leaks, said it is talking with several prospective buyers of its Toxguard Systems and Toxguard Fluid Technologies units. The two firms are based in Irvine and have a total of about 30 employees.

The company, which has posted losses throughout most of the decade, said it will concentrate its business on a specific monitoring system it gained when it acquired the Colorado company Ustman Industries Inc. in May.

With Ustman’s more familiar name on that system, Watson decided to change its name to Ustman Technologies Inc.

Dan Cook, who was president of Ustman Industries, became chief executive of the combined firms in May. Ronald Crane, Watson’s president and chief executive, retains a board seat.

The four Watson corporate executives in Irvine and 22 employees in Kansas City will relocate to Colorado this summer, Chief Financial Officer Joseph Christoffel said. Ustman now has about 50 employees working in its Colorado offices.

“It seemed like a natural move into a product line that has a lot of potential growth,” Christoffel said. “The need for efficient and cost-effective monitoring systems is growing.”

In 1988, the Environmental Protection Agency required that all underground storage tanks have an approved monitoring system in place by 1998. The EPA estimates at least 25% of the 1.75 million underground tanks in the U.S. have leaked or are leaking. This seepage can contaminate nearby ground water, a common source of drinking water.

Watson bought Ustman for $5.25 million in cash and a $500,000 12-month note. Watson’s Toxguard Systems is an environmental consulting group, while Toxguard Fluid Technologies develops methods for recycling antifreeze on-site.

Watson reported annual losses totaling $9.2 million from 1991 to 1996. Last year alone, Watson lost $2.1 million on $4.1 million in sales.