Sterling Consolidated Issues a Definitive Term Sheet
07 Mai 2014 - 2:00PM
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.
CONTACT: Communications Contacts:
Scott Chichester
Phone: 646-388-2495
Email: schichester@sterlingconsolidated.com
Sterling Consolidated (CE) (USOTC:STCC)
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