NEPTUNE, N.J., May 7, 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 its Acquisition Committee has issued a term sheet to a NJ distributor with annual revenues of more than $2 million. This target company is profitable and well-established in the marketplace with a rich 50-year history and includes a highly skilled engineering department.
This potential acquisition carries much synergy to the Company's business model, and would allow the Company to consolidate occupancy and operations with Sterling's headquarters in Neptune, New Jersey. In addition to new domestic and international customers, the synergies would provide significant operational cost savings. Sterling's management is currently negotiating with the target company to finalize the basic terms of the Agreement.
Darren DeRosa, Chief Executive Officer of Sterling Consolidated, commented, "Our Acquisition Committee continues to negotiate with the most likely candidates for acquisition. We continue to monitor cash flow and use current proceeds of recent financings to complete our acquisitions."
The estimated closing date is September 15, 2014.
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.