The Brenner Group Advises KG Technologies on its Sale to Hongfa

July 22, 2015 at 1:41 pm Leave a comment

KG Technologies, Inc. announced on May 29, 2015 that it reached an agreement to sell KG Technologies, Inc. and the assets of its parent company Clodi LLC to Hongfa Holdings U.S., Inc., a wholly owned subsidiary of Hongfa Technology Co. Ltd, a world leader in relay development and manufacturing.  Hongfa is listed on the Shanghai Stock Exchange under the symbol SHA:600885.

The Brenner Group acted as exclusive financial advisor to KG Technologies and Clodi LLC.

KG/CLODI, a privately held company, is a leading supplier of latching relays to the global smart metering market outside of China. KG was named the 49th fastest growing company in the U. S. in 2011 by and has received numerous awards from its customer base.

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.”

Global Leadership
“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 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.”

Michael Roy is Director of Mergers & Acquisitions at The Brenner Group where he has focused primarily on middle market advisory and transaction engagements. Prior to his affiliation with The Brenner Group, Mike held posts at firms such as Pacific Marketing Partners, Corporate Finance Associates, and Lehman Brothers. Mike has authored multiple “white papers” relating to the food and beverage industries in the U. S., to commercial real estate acquisition opportunities, and to environmental technology developments. He graduated from the University of Notre Dame and received a Woodrow Wilson fellowship for post-graduate study.
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Entry filed under: Financial Advisory, Interim Management, Valuations.

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