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Sterling Consolidated Corp. (OTCBB: STCC), Neptune, NJ, a supplier of hydraulic and pneumatic seals to the automotive and industrial marketplace, has entered into a letter of intent to acquire R G Sales, Inc., a West Alexander, PA-based parts distributor serving 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. The transaction will be completed using only cash and no shares of Sterling Consolidated.
"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," said Darren DeRosa, CEO of Sterling Consolidated. "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."
The acquisition fits with Sterling Consolidated's strategy to expand its footprint in the Northeast and to develop a distribution presence in the mining and hydro-fracking industries.