Sterling Consolidated Corp., a leading supplier of hydraulic and pneumatic seals to the automotive and industrial marketplace, today announced the acquisition of Superior Seals and Service in High Point, NC. This is the Company's first acquisition as it commences its accretive roll-up strategy.
The Company paid less than 3x EBITDA for the acquisition in a combined stock and cash transaction. The acquisition is expected to add $0.4 million in annual sales and approximately $50,000 in EBITDA upon closing.
Superior Seal, www.superiorseals.com, is a 20-year-old manufacturer of cut gaskets and mechanical seals. The acquisition adds a strategic location to enhance the distribution network of Sterling Consolidated, which can now provide one day transit time from Maine to Florida. The acquisition also provides the Company with manufacturing capabilities, increased the delivery speed on manufactured items with direct shipments and an in-house manager with over 30 year's experience as an engineer.
Darren DeRosa, Chief Executive Officer of Sterling Consolidated, commented, "We are very excited to announce our first of many acquisitions we anticipate happening over the coming quarters. Superior Seals is a very strategic acquisition as it not only adds to our top and bottom line, but also expands our geographic footprint. We are now able to deliver products with a one day transit time from Maine to Florida, which is a major competitive advantage in our industry. We look forward to announcing similar acquisitions in the future as we have a number of targets in our pipeline that will enable us to continue with our roll-up strategy."
