Merit Group Company Acquires California Business

Lancaster, a wholly owned subsidiary of The Merit Group, Inc. (distributors of residential and commercial paint supplies and related products based in Spartanburg, SC), has reached a definitive agreement to acquire substantially all of the assets of GMG Distributors, also a distributor of painting supplies and related items, based in San Leandro, California. The acquisition is set to close May 1, 2007.

Lancaster currently services 37 states, the Caribbean, Mexico and Central America through 5 distribution centers located in South Carolina, Florida, Kentucky, Pennsylvania and Texas. GMG currently services California, Nevada and Oregon out of its San Leandro facility.

Lancaster CEO Mitch Jolley stated, "The acquisition of GMG will provide the opportunity to further our goal of providing sundry distribution nationwide to our suppliers and the customers we serve. This acquisition brings together two companies that share a common business philosophy and a long history of working together in the paint sundry industry."

GMG President Richard Sauve said, "I am pleased to be able to team-up with a company of the caliber of Lancaster. I can't think of anyone better to carry on the vision of growing our market with than the Lancaster team."

Welcome to our new Lancaster Regional Sales Manager:

Les Kirvin - Alameda CA Email:

Rob Wolf - Chico CA Email:

Welcome to our new Lancaster Territory Managers:

John Adao - Elk Grove CA Email:

Barbie Becker - Castro Valley CA Email:

Katie Damon - Reno NV Email:

Jack Ford - Willits CA Email:

Sally Hanson - Petaluma CA Email:

Mary Ann Kouvelis - Mt Prospect IL Email:

Alan Marks - Tracy CA Email:

Darwin Reategui - Albuquerque NM Email:

Paul Robarts - Forestville CA Email:

Cody Ryan - Redding CA Email:

Doug Spring - Houston TX Email:

Tedd Thompson - Forest Ranch CA Email: