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Pameco sells $35 million in stock to two investors

ATLANTA, GA — To repair its financial problems, Pameco Corp., the giant hvac wholesaler, agreed to issue shares of a new series of preferred stock in exchange for $35 million from two investment companies.

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.”

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Greg Mazurkiewicz is Web Editor. He can be contacted at 248-244-6459 or gregmazurkiewicz@achrnews.com. Greg handles the day-to-day operations of The NEWS' website, www.achrnews.com, including the Extra Edition page, which offers additional online-exclusive articles. He has 40 years of experience as a writer and editor. He holds a bachelor's degree in Journalism and a master's degree in Business Management.