Mar 25 2010
AGR Tools, Inc. (OTCBB: AGRT) is pleased to announce that AGR Stone & Tools USA, Inc. ("AGR USA"), with which AGR Tools has entered into a binding share exchange agreement, is continuing to pursue its aggressive North American expansion strategy by targeting several new dealers to add to its network of diamond tool distributors.
AGR USA has commenced the selection process and is currently interviewing and negotiating with nearly a dozen potential candidates, putting it on track to have a large presence in many important diamond and construction tool markets in both the United States and Canada by the end of 2010.
AGR USA is in the final stages of coordinating a distribution center to service the city of San Francisco as well as the surrounding communities of Oakland and San Jose, which it estimates has a collective annual diamond tool market of over $25 million. "The Bay Area is a key market for us, and the construction outlook there is growing more robust as the economy continues to improve," stated Rock Rutherford, the CEO of both AGR Tools and AGR USA. The company is also close to selecting a dealer to operate in the St. Louis, Missouri market, that would cater to a population of roughly 5.9 million and a potential diamond tool market of over $35 million per year.
In addition, AGR USA is in negotiations with separate dealers in two different Florida markets, dealers in two North Carolina markets and a potential Eastern Texas dealer, and it plans to establish two Canadian distribution centers in Toronto, Ontario and Vancouver, British Columbia within the next month. All of these would bring AGR USA closer to its 2010 goal of having 62 distribution centers.
By increasing its North American distribution capacity, AGR USA plans to capture a significant piece of the diamond tool market and provide construction contractors and fabricators with low-cost, high-quality products directly from its local dealers. The company currently has dealers in over 25 markets and hopes to establish a brand identity that is unrivalled in the segmented and geographically-fragmented diamond tool market. "We are ahead of schedule with our expansion plans and intend to continue moving at full speed toward with our strategy," commented Rutherford.
Source: http://www.agrtools.com