NEPTUNE, N.J., Jan. 13, 2014 (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 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.