Posted by: Diane Capuano
The following is a press release provided to us by Lancaster regarding the pending acquisition of Five Star Products Inc.
The Merit Group, Inc., a Spartanburg, South Carolina-based corporation, has reached an agreement to purchase outstanding shares of Five Star Products, Inc., a distributor of paint supplies, hardware and related products headquartered in East Hanover, New Jersey. The closing of this agreement is anticipated to occur in the first quarter of 2010.
“We are excited at the prospect of Five Star Products joining our group. Five Star has developed a reputation over many years for outstanding customer service led by Bruce Sherman and supported by an excellent sales force. Five Star’s customers will continue to enjoy the benefits of working with the same sales and marketing team made stronger by the combined organizational systems and procurement advantages of what will be the largest paint sundries distributor in the United States,” said Jay Baker, chief executive officer of The Merit Group. “We are committed to building on the foundation that Five Star has built by continuing to offer the product mix, services and promotions that Five Star’s customers have come to expect.”
Mr. Baker continued: “The combined strengths of our two companies will allow us to address the growing number of opportunities for both our vendors and customers in the markets we serve. We look forward to delivering on the promise of this acquisition, as well as building value for our customers, vendors and associates.”
About Five Star
Five Star Products, Inc. distributes in the Northeast and Middle-Atlantic states with particular strength in the greater New York metropolitan area. Five Star distributes products to approximately 3,000 independent retailers, which include paint stores, independent hardware stores, lumber yards and do-it-yourself centers. Five Star offers a range of private label products sold under the “Five Star” name and operates two distribution centers located in East Hanover, New Jersey and Newington, Connecticut.
About The Merit Group
The Merit Group, Inc. provides wholesale distribution of paint sundry and drywall-related products through its Lancaster, Merit Trade Source and Merit Pro trade names. The company’s customers are located throughout the United States, Mexico, the Caribbean and Central and South America. The company services over 10,000 retail locations including leading national, regional and independent paint chains, home improvement centers, hardware stores, lumber yards and drywall yards through its seven regional distribution centers. The company also offers a broad assortment of paint sundry and drywall-related products under its “Merit Pro” brand.