Winning Brands Corporation (WNBD)

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Lancaster Distributing closed acquisition

National Patent Development Corporation Closes Sale of Five Star Products, Inc.

01/15/2010 @ 5:34PM

National Patent Development Corporation (OTC Bulletin Board: NPDV.OB) today announced that it has closed the sale of all of the stock of Five Star Products, Inc. to The Merit Group, Inc. for cash pursuant to the Stock Purchase Agreement by and between The Merit Group, Inc. and National Patent Development Corporation.

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Review and connection

(November 24, 2009) - National Patent Development Corporation (OTC Bulletin Board: NPDV.OB) today announced that it has signed a definitive stock purchase agreement pursuant to which it will sell all of the issued and outstanding shares of common stock of its wholly-owned subsidiary, Five Star Products, Inc., to The Merit Group, Inc., the parent company of Merit Paint Sundries, LLC d/b/a Lancaster Distributing, a leading paint sundries distributor based in South Carolina

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Review of Five Star

http://www.fivestargroup.com/index.html

Five Star is the leading supplier of paint and hardware to Independent Retailers from Maine to South Carolina.

Five Star Products, Inc. engages in the wholesale distribution of home decorating, hardware, and finishing products in the United States. The company distributes its products to retail dealers, including lumber yards, do-it yourself centers, independent hardware stores, and paint stores in the Mid-Atlantic states.

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The transaction is not conditioned upon Merit obtaining financing.
Jay Baker, CEO and President of Merit and Lancaster, further commented, “We at Lancaster 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 in its Northeast and Mid-Atlantic markets, led by Bruce Sherman and supported by an excellent sales force. Five Star’s customers will continue to enjoy the benefits of working with that team made stronger by the combined organizational, systems and procurement advantages of what will be the largest paint sundries distributor in the United States. Our combined organization will offer our vendor partners increased efficiencies in serving our expanded customer base. As the only national paint sundries distributor, Lancaster will continue to use all its resources to provide customers, new and old, with the most competitive pricing and service in the industry.”

Five Star Products, Inc., a Delaware corporation wholly-owned by National Patent and headquartered in East Hanover, New Jersey, is engaged in the wholesale distribution of paint sundry and hardware products 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 retail dealers, which include paint stores, independent hardware stores, lumber yards, and do-it yourself centers.

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So now official - Lancaster reach is approximately 13,000 independent retail dealers, which include paint stores, independent hardware stores, lumber yards, and do-it yourself centers.