Sterling Consolidated Announces Letter of Intent to Acquire Specialized Industrial Distributor
13 Janeiro 2014 - 7:12PM
Sterling Consolidated Corp. (OTCBB:STCC) (the
"Company"), a leading supplier of hydraulic and pneumatic seals to
the automotive and industrial marketplace, today announced that it
has entered into a letter of intent with R G Sales, Inc., a
Pennsylvania based parts distributor that currently serves many
industries, specifically the local underground mining and
hydro-fracking market.
Upon the closing of the acquisition, R G Sales' entire
distribution business will become integrated into Sterling
Consolidated's business and contribute directly to its top-line
revenue stream. The transaction will be completed using only cash
and no shares of Sterling Consolidated. The Company's recent bank
financing of $2.425 million, secured during the fourth quarter of
2013, has allowed for the timely execution of this acquisition.
Darren DeRosa, Chief Executive Officer of Sterling Consolidated,
stated, "We are very excited to announce the pending acquisition of
R G Sales, and look forward to expanding our business into the
high-growth mining and fracking markets. R G Sales was profitable
in 2012, generating close to $1 million in gross sales revenue over
the course of the year. Along with the strong revenue contribution,
RG Sales brings Sterling a loyal customer base and established
regional distribution network."
"This acquisition falls right in line with our strategy to
continue expanding our footprint in the Northeast and will position
us to grow our business organically. As this is a new market for
Sterling Consolidated, we hope to leverage this opportunity and
develop a strong distribution presence in the mining and
hydro-fracking industries," concluded Mr. DeRosa.
About Sterling Consolidated Corp.
Sterling Consolidated Corp., through its wholly-owned
subsidiary, Sterling Seal and Supply has been a leading supplier of
hydraulic and pneumatic seals to the automotive and industrial
marketplace for more than 40 years. Through a combination of
leveraging its logistical expertise and sophisticated, experienced
management, the company intends to be an active and strategic
consolidator of small- and mid-sized businesses within the
highly-fragmented, multi-billion dollar seal industry. Currently
serving more than 3,000 customers, Sterling offers acquisition
targets a unique growth opportunity and competitive advantage
through logistical expertise, strong regional branding and
industry-specific distribution centers.
About R G Sales, Inc.
R G Sales, Inc. was founded in 1992 by Ronald E. and Marge M.
Graham as a parts distributor to the underground mining industry.
Today, R G Sales services many industries besides underground
mining including the steel, oil and gas, sporting goods, mining
suppliers and aftermarket mining machinery repair services, machine
shops, hospitals, medical equipment, and landscaping industries. We
ship our parts to facilities worldwide.
To learn more, please visit www.rgsales-inc.com
Forward-looking Statements
This release contains statements that constitute forward-looking
statements. These statements appear in a number of places in this
release and include all statements that are not statements of
historical fact regarding the intent, belief or current
expectations of the Company, its directors or its officers with
respect to, among other things: (i) the Company's financing plans;
(ii) trends affecting the Company's financial condition or results
of operations; (iii) the Company's growth strategy and operating
strategy; and (iv) the declaration and payment of dividends. The
words "may," "would," "will," "expect," "estimate," "anticipate,"
"believe," "intend," and similar expressions and variations thereof
are intended to identify forward-looking statements. Investors are
cautioned that any such forward-looking statements are not
guarantees of future performance and involve risks and
uncertainties, many of which are beyond the Company's ability to
control, and that actual results may differ materially from those
projected in the forward-looking statements as a result of various
factors.
CONTACT: Communications Contacts:
Todd Fromer / Phil Carlson
KCSA Strategic Communications
Phone: 212-896-1215 / 212-896-1233
Email: tfromer@kcsa.com / pcarlson@kcsa.com
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