WASHINGTON, D.C., September 10, 2013 -- Virtual Sourcing, Inc. (OTCPink: PGCX) subsidiary, Allied Recycling Corp., (ARC) has signed a letter of intent to purchase the assets of a holding company that includes a concrete products manufacturer with more than 20 years of operations. The concrete operation has historical sales exceeding $17 million annually in four of the last five years with discretionary cash flows in excess of $3 million in its latest fiscal year.
The acquisition will allow the company to introduce a line of consumer products with the appearance of conventional stone products but with lighter weight and increased durability. The reduction in price of materials used in production will allow us to enter the retail market at a significantly reduced price point with increased profit margins.
"This acquisition gives an immediate utilization for our recycled fiberglass materials. Our recycled materials can be used in some of the existing product lines to strengthen and reduce weight. Our intent is both to expand current business operations and to add consumer products to the existing product line. The projections for sales of the new product line will be available for release after further discussion with existing management and potential sales outlets," stated Mario Faraone, President of Allied Recycling Corp.
The acquisition will close upon the successful completion of an appraisal of the assets and due diligence. Due diligence procedures began yesterday, the purchase contract is currently being drafted to finalize all terms, and closing is anticipated during October 2013. Financing has been located and the terms are being finalized with no stock issuances or conversions involved.
Virtual Sourcing, Inc. is actively pursuing the acquisition of thriving businesses with a five-year or more operating history, year over year sales growth, and an increasing net cash flow already in excess of 10% of sales. Target companies include recyclers, manufacturers of recycled products, plastics extrusion companies and suppliers of recycled materials for manufacturing. The company believes the acquisition of these types of business will immediately enhance our bottom line and provide professional expertise for our fiberglass recycling and product manufacturing operations.
This press release contains forward-looking statements. Such forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause the Company's actual results to differ materially from those projected in such statements. Forward-looking statements speak only as of the date made and are not guarantees of future performance. We undertake no obligation to publicly revise any forward-looking statements.
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SOURCE Virtual Sourcing, Inc.