GSE Systems acquires Texas Instruments unit


GSE Systems Inc., a Columbia-based supplier of systems that simulate industrial processes, said yesterday that it has acquired a Hunt Valley business that could extend GSE's reach far beyond its stronghold in the power generation industry.

Under an agreement with Texas Instruments Corp. of Dallas, GSE will offer jobs to the 235 managers and other employees of TI's Process Systems business and continue doing business at its current location. GSE Systems will change the name of the business to GSE Process Solutions Inc.

The companies declined to reveal the price of the acquisition.

GSE Systems is the holding company for Columbia-based S3 Technologies, formerly the Link Simulation Systems division of the Singer Co. S3 Technologies is a leading provider of computer systems that simulate power generation processes, both for system design and employee training purposes.

The business that GSE is acquiring creates systems that do the actual work of controlling manufacturing and power generation process -- running the automated machinery that formulates a medicine, for instance.

William Kuhlmann, GSE's chairman and chief executive, said the acquisition was part of a long-term strategy to expand the company's role in such industries as pharmaceuticals, foods and beverages, wastewater treatment and chemicals.

Michael Allocco, GSE's vice president for sales and marketing, said the two companies are "an absolutely very positive fit."

Mr. Allocco said about 80 percent of S3 Technologies' business comes from the power generation industry while 90 percent of the Process Systems' group's work comes from manufacturing processes.

And whereas S3 Technologies' business is 90 percent international, the Texas Instruments subsidiary's sales were 80 percent domestic, he said.

Mr. Allocco said the combined businesses will have an estimated $90 million in sales during the current fiscal year. He declined to provide any further breakdown.

Process Systems has been active in Hunt Valley under several owners since the late 1960s, he said. Originally named EMC Controls, it was owned by Rexnord Inc. until 1987, when it was sold to TI, he said.

With the addition of the Process Systems, GSE Systems will employ about 560 people worldwide, Mr. Allocco said. Besides S3 Technologies and GSE Process Solutions, the company also operates a Swedish subsidiary called EuroSim AB.

Privately held GSE Systems is 45 percent owned by ManTech International Corp. of Fairfax, Va., and 35 percent owned by National Patent Development Corp. of New York. Columbia-based General Physics Corp. and Vattenfall AB of Sweden each hold 10 percent stakes.

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