TAMPA, FLA. - Resin and chemicals distributor JLM Industries Inc. has received a much-needed financial boost, securing $31.5 million in financing from four lenders and investors.
The Tampa-based firm, which has been working to expand its presence in resin distribution, has struggled in the past two years, losing almost $2 million even as sales grew more than 30 percent between 1999 and 2000. JLM sales passed the $400 million sales mark in 2000.
JLM now has $29 million in credit and loans at its disposal from Congress Financial Corp., GATX Capital Corp. and SouthTrust Bank. Phoenix Enterprises LLC investment group also has agreed to buy $2.5 million of JLM stock.
At one point earlier this year, JLM was in danger of having its stock delisted from Nasdaq, as the value of its public stock had slipped below $5 million for 30 consecutive days. The stock, which approached $1 per share in early December, since has rebounded and stood June 29 at almost $3.
JLM's biggest move into resin distribution came in December when it acquired engineering resins distributor Franklin Polymers Inc. of Broomall, Pa.
JLM officials have said that the company is planning further acquisitions in both plastics distribution and compounding.