Pameco sells $35 million in stock to two investors
Pameco said Littlejohn Fund II L.P. will contribute $28 million of the purchase price, and Quilvest American Equity Ltd. will contribute $7 million.
The arrangement “supplies us with a solid financial infrastructure that will provide us with an opportunity to grow,” said James R. Balkcom, Pameco chairman.
The wholesaler is coming off a poor third quarter, which saw net sales declining to $136 million, compared to $148.1 million for comparable period a year earlier. The operating loss for the third quarter of 1999 was $5.4 million, compared to earnings of $2.2 million in the prior year’s quarter.
The company blamed “supply chain issues that affected product availability.”