Micro D Founder Sells Remaining Shares : Nashville Company Gets Control of Computer Parts Distributor
Lorraine Mecca, founder and former chief executive of Micro D, has sold her remaining shares in the Santa Ana computer parts distribution company to Ingram Distribution Group Inc. of Nashville, giving Ingram control of the slumping firm and a major presence in the computer products wholesaling industry.
Ingram, which claims to be one the nation’s largest distributors of books, audio and video tapes and computer software, also has been given four additional seats on the company’s board of directors for a majority on Micro D’s 11-member board.
Despite its new control, an Ingram executive said the company plans no changes at Micro D, a six-year-old firm that has experienced sagging sales and five consecutive quarterly losses. Just Friday, the company reported its first annual loss, $3.1 million for 1985, and its largest-ever quarterly loss, $1.8 million for the fourth quarter of last year.
“One of the first questions at the next board meeting,” said Philip Pfeffer, chairman of Ingram Distribution Group, “will be how management plans to make a profit . . . . I’m kind of anxious to see how they think.” The board members have scheduled a telephone conference for today, he added.
Pfeffer discounted rumors that Ingram is interested in merging Micro D, one of the largest computer-related distribution companies in the country, with its two other recently acquired software distribution companies, Ingram Software Distribution Services in Buffalo and Softeam in Compton.
Softeam, which Ingram purchased last month, already has been merged into the Buffalo-based firm, creating an entity that Pfeffer claimed is the nation’s largest wholesaler of computer software. Pfeffer declined, however, to release sales data for the privately held company.
$6.6 Million Paid
Pfeffer said that Ingram, which gave Mecca about $6.6 million in cash and notes for her 3.3 million shares, was interested in Micro D primarily for its distribution of computers and other so-called “hardware,” not for its software-wholesaling operations. A Micro D official said that hardware accounts for about 60% of its sales, with software generating the remainder.
Although Ingram told the Securities and Exchange Commission in a recent filing that it might be interested in purchasing additional shares of Micro D, Pfeffer said the company is content now with its 50.3% stake and is not looking to expand it.
The newly elected Micro D directors are E. Bronson, Ingram, chairman and president of Ingram Industries; Pfeffer, executive vice president of Ingram Industries and chairman of Ingram Distribution Group; Steven J. Mason, president of Ingram Distribution Group, and David F. Sampsell, vice president for corporate development at Ingram Industries.
