NEPTUNE, N.J., Sept. 20, 2013 (GLOBE NEWSWIRE) -- 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.