After hour news! $STCC enters into a LOI with R G
Post# of 144482
After hour news! $STCC enters into a LOI with R G Sales, Inc., a Pennsylvania based parts distributor
NEPTUNE, N.J., Jan. 13, 2014 (GLOBE NEWSWIRE) -- Sterling Consolidated Corp. ( 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.
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