Update:

Listen to the interview with Philipp Gruner, President and CEO of KG Technologies, in which he talks about the proposed purchase of the company, and what it will mean for both KG and Hongfa.

 

Original story:

Hongfa Holdings U.S. Inc. a grandson subsidiary of Hongfa Technology Co. Ltd, a world leader in relay development and manufacturing, announced today it has reached an agreement to acquire KG Technologies Inc. and the assets of its parent company Clodi LLC.

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.”

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 since 1998 for the manufacturing of KG’s products.