Xiamen, China, May 29, 2015 – Hongfa Holdings U.S., Inc., a grandson subsidiary of Hongfa Technology Co. Ltd (SHA:600885), a world leader in relay development and manufacturing, announced today it has reached an agreement to acquire KG Technologies, Inc. (“KG”) and the assets of its parent company Clodi LLC (“CLODI”).
KG/CLODI, a privately held company, is a leading supplier of latching relays to the global smart metering market outside of China. KG was awarded the 49th fastest growing company in 2011 by Inc.com and has received numerous awards from its customer base for its excellent customer service and technical support. KG/CLODI owns 24 patents globally for latching relay technology with many more pending. KG has partnered with Hongfa Technology Co. Ltd and its subsidiaries (“Hongfa”) since 1998 for the manufacturing of KG’s products.
Philipp Gruner, President and CEO of KG Technologies, Inc. said “The acquisition of KG by Hongfa further cements the strong relationship that we have developed during the past two decades. This merger is a clear indication of Hongfa’s strong commitment to the global relay market. The combined KG/Hongfa brand is the undisputed leader of latching relays to the global smart meter market and together, we are already exploring avenues to further strengthen our product and IP portfolio.”
“This is the largest overall, and the first international acquisition by Hongfa in its 30 year history” as stated by Guo Manjin, Chairman and CEO of Hongfa. “It clearly shows that after a strong partnership of 18 years together Hongfa and KG are starting a new chapter in their cooperation. The acquisition of KG not only retains the advantages of their existing market, strong brand and technology, but also the integration of Hongfa’s 30 years of relay experience in the field of wealth management will greatly improve the competitiveness of the combined entity. Together we will continue to defend and expand our global leading position in providing the best latching relays to the smart meter market.”
About KG Technologies, Inc.
KG Technologies, Inc. is a leading supplier of latching relays for smart/prepay meters globally. Headquartered in Cotati, California with offices worldwide, the Company excels in providing strong customer support, continuous R&D development and maintains a substantial IP portfolio globally. KG is the brand that companies count on when they are Switching to a Greener TomorrowTM. To find out more about how you can switch to a greener tomorrow, visit the KG website at www.kgtechnologies.com.
Hongfa is a leading manufacturing and developer of relays and related products. With over 30 years of experience, Hongfa has become the global leader with more than 20 subsidiaries. In 2014 Hongfa ranked 3rd in the industry with a turnover of $872M, accounting for 10.45% of global relay market share. Hongfa is the global leader in the General Purpose and Power Relay market. Hongfa is continuously working to expand its market, improve its technical capabilities, its management and quality. Hongfa continues to make large investments into its manufacturing, R&D and testing capabilities to ensure that it produces the highest quality, best performing products in the marketspace. This acquisition, along with further investments made to increase manufacturing capacity by 50% in 2017, clearly shows its strong commitment to the market. Hongfa intends to double its turnover by 2020 and become the leading relay supplier worldwide. To find out more about Hongfa, visit their website at www.hongfa.com.
Contact: Aaron Buchholz – Vice President of Sales & Marketing