Sterling Consolidated Acquires Superior Seals and Service
20 Settembre 2013 - 10:41PM
Sterling Consolidated Corp. (OTCBB:STCC) (the
"Company"), a leading supplier of hydraulic and pneumatic seals to
the automotive and industrial marketplace, today announced the
acquisition of Superior Seals and Service in High Point, NC. This
is the Company's first acquisition as it commences its accretive
roll-up strategy.
The Company paid less than 3x EBITDA for the acquisition in a
combined stock and cash transaction. The acquisition is
expected to add $0.4 million in annual sales and approximately
$50,000 in EBITDA upon closing.
Superior Seal, www.superiorseals.com, is a 20-year-old
manufacturer of cut gaskets and mechanical seals. 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. The acquisition also provides the
Company with manufacturing capabilities, increased the delivery
speed on manufactured items with direct shipments and an in-house
manager with over 30 year's experience as an engineer.
Darren DeRosa, Chief Executive Officer of Sterling Consolidated,
commented, "We are very excited to announce our first of many
acquisitions we anticipate happening over the coming
quarters. Superior Seals is a very strategic acquisition as it
not only adds to our top and bottom line, but also expands our
geographic footprint. We are now able to deliver products with
a one day transit time from Maine to Florida, which is a major
competitive advantage in our industry. We look forward to
announcing similar acquisitions in the future as we have a number
of targets in our pipeline that will enable us to continue with our
roll-up strategy."
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:
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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