SHREWSBURY, N.J. - When the deal is done, Wellman Inc. won't get rich by selling off New England CRInc. - at least according to Wellman's accountants. Publicly held Wellman deducted an after-tax loss of $3.4 million on the expected sale of the materials recovery unit, according to the firm's quarterly report for the period ended June 30.
``That would imply we will receive less in initial monies than we paid/invested in CRInc.,'' a spokeswoman for the Shrewsbury-based plastics recycler said.
Wellman paid $17.8 million for the materials recovery facilities subsidiary in August 1990. CRInc. reported 1994 sales of $27 million.
In late June, the Justice Department confirmed an ongoing review of the proposed purchase of CRInc. by WMX Technologies Inc. The deal is being scrutinized for potential antitrust violations.
A WMX spokesman confirmed the Oak Brook, Ill.-based waste-management firm wants to buy CRInc. He said WMX expects to consummate the deal as soon as the Justice Department completes its investigation. He did not know how long that will take.
Wellman's reported loss is based on what the company believes will be the outcome of the sale of CRInc., the spokeswoman said. She could not confirm any details about the pending agreement.
Industry analysts said WMX's proposed purchase of CRInc. is consistent with the firm's strategy to acquire its way into the recycling business. In May, WMX bought Resource Recycling Technologies Inc. of Vestal, N.Y., an owner of several MRFs.
Wellman said the sale of CRInc. is part of Wellman's strategy to focus on and expand its core business. Wellman manufactures and markets polyester products, recycled polyester fibers and related products.
CRInc. designs, builds and operates MRFs for both the private and public sectors. The company also is the exclusive distributor of the Maschinenfabrik Bezner system for sorting commingled recyclables.
The Chelmsford, Mass.-based subsidiary operates 18 MRFs in 10 states and one in Toronto.