Continues to Execute its Strategy With 3rd Acquisition
January 17, 2019 -- Sterling Consolidated Corp. (OTC: STCC) (The Company), a leading supplier of hydraulic and pneumatic seals to the automotive and industrial marketplace for almost 50 years, and creator of the blockchain based DiMO Token, today shared news regarding its acquisition of F&S Distributors, Inc. a 58-year old Jackson, New Jersey o-ring distributor (www.fnsdistributors.net).
“This acquisition exemplifies our business model,” said Sterling CEO, Darren DeRosa.“F&S has been a quality competitor in the o-ring business for over 58 years and has a steady customer base with many custom parts.Additionally, the operations are close to our headquarters in New Jersey. The consolidation of operations will reduce post-acquisition overhead and create other economies of scale.”
The deal is structured as an asset purchase and the terms call a combined cash and stock purchase totaling $900,000.Sterling will retain all key performers including the top management and sales positions.
F&S reported $2.7 million in sales on its most recent federal corporate tax return along with $283k in receivables, $718k in inventory and $204k in net income.
Mr. DeRosa stated, “When we include the projected $2.7 million sales from F&S, we forecast breaking the $9.2 million mark in total sales for 2019. This represents an approximate 40% increase in our current sales level.This type of acquisition is exactly what we envisioned when we went public in 2013.We are committed to being one of the most forward-thinking companies in the o-ring sector. Our intent is to continue to grow Sterling both through acquisition and the technological innovation of our blockchain endeavor known as DiMO”.
For more information visit: investor.sterlingconsolidated.com
About Sterling Consolidated Corp.
Sterling Consolidated Corp., through its wholly-owned subsidiary, Sterling Seal and Supply is a leading supplier of hydraulic and pneumatic seals to the automotive and industrial marketplace for almost 50 years as well as an approved supplier to Amazon and Walmart. The Company has 5 locations throughout the USA, and plans to acquire more through its ongoing acquisition strategy. The Company is also the creator of the DiMO, a Blockchain based cryptocurrency, that they hope brings an edge to the industry and improves overall profits and efficiencies through the use of smart contracts.
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SOURCE Sterling Consolidated Corp.