On April 30, shareholders of Bloomsbury, N.J.-based Wedco Technology Inc. approved a merger that makes Wedco a subsidiary of ICO Inc. ICO is headquartered in Hous-ton. Together, the companies employ 1,400.
Wedco is an international pro-vider of custom processing services and machinery for the plastics industry. Its principal business is grinding of plastic pellets into plastic powder and related processing services to the petrochemical industry and other industries requiring powder in their operations.
It also is involved in cryogenic grinding, air-jet milling and compounding.
ICO serves the energy industry by inspecting, reconditioning and coating new and used tubular goods and sucker rods used in the exploration of oil and gas. ICO also sells equipment and supplies used in these processes.
Under the terms of the merger, which was proposed last August, Wedco shareholders will receive the choice of either 2.2 ICO common shares and $3.50 cash or 2.84 ICO common shares for each Wedco share.
There are about 3.6 million Wedco shares and 8.9 million ICO shares outstanding.
Demand for ICO's products and services depends on the level of oil and gas drilling and production activity, and fluctuates with the price of oil and the domestic drilling rig count. Wedco's business cycles are created by changes in the cost of the plastic pellets produced by the major petrochemical companies.
ICO reported net losses in fiscal years 1991, 1992 and 1993. Re-structuring of management began in 1994. The company reported a profit of $5.79 million, or 41 cents per share, for the fiscal year ended Sept. 30. The firm owns 22 facilities in the United States and Canada.
ICO is a defendant in 13 suits involving 14 plaintiffs for personal injury claims alleging exposure to silica resulting in silicosis-related disease. The suits were filed between 1988 and February 1996.
Wedco reported a profit of $3.91 million, or $1.08 per share, for the fiscal year ended March 31, 1995. The company has 11 plants in the United States and Europe.