Sterling Consolidated Acquires R.G. Sales Inc.
April 23 2014 - 7:00AM
Sterling Consolidated Corp. (OTCBB:STCC) (the
"Company"), a leading supplier of hydraulic and pneumatic seals to
the automotive and industrial marketplace, announces the
acquisition of R.G. Sales Inc. West Alexander, PA. This is the
Company's second acquisition as it continues its consolidation
efforts.
Due to R.G. Sales Inc. average revenue of $827,000, over the
last 3 fiscal years, the company expects to add incremental revenue
of $0.7-$0.8 million in the next year from this acquisition.
R.G. Sales Inc. is a 20-year-old distributor of O-rings,
retainer rings, lock nuts and springs to the oil and gas industry
in western PA. The acquisition adds a strategic location to enhance
the distribution network of Sterling Consolidated, which can now
provide one day transit time from Maine to Florida and as far west
as Illinois. The acquisition also provides the Company with
additional expertise as management will remain for 2 years.
Darren DeRosa, Chief Executive Officer of Sterling Consolidated,
commented, "The expansion into western PA allows us to increase our
market share in the oil and gas sector. Many of these seals
are sourced locally and it is advantageous to have a local
footprint. This additional revenue should also improve our profit
margins."
Mr. DeRosa further added, "We look forward to increasing
shareholder value by continuing to execute our plan of strategic
acquisitions."
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.
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:
Scott Chichester
Sterling Consolidated Corp.
Phone: 646-388-2495
Email: schichester@sterlingconsolidated.com
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