KLG Europe swallowed by Chinese corporation
KLG Europe and Sinotrans signed an agreement yesterday for the acquisition of KLG Europe by Sinotrans, which will be implemented in the coming months, following the usual approval of regulators.
Sinotrans will retroactively take over 80 percent of the shares as of January 1, 2019, which will be expanded to 100 percent by mid-2020. This agreement applies to all European branches of KLG Europe.
Due to the lack of successors, the current owners Ad and Kees Kuijken have searched for a strong party that can continue the activities of KLG Europe and further expand with the right strategy. One of the most important criteria when choosing a new owner was maintaining the existing culture within KLG Europe, which forms the basis for the loyalty of employees within the company, towards customers, agents and to the high level of service. This loyalty is undoubtedly the basis of the company’s success.
“Making the right decisions at the right time, in a responsible manner, with a clear vision and strategy, is part of good entrepreneurship. Hereby you have to take seriously into account the continuity and growth of your company, the interests of your staff, your clientele and your foreign agents and networks. We have always seen this as one of the core values of our business and we are convinced that this has been an important pillar that has contributed to the success of KLG Europe ”, says Ad and Kees Kuijken.
The contacts with Sinotrans are the result of the intensive cooperation that KLG-ITM and Sinotrans have in China. For the 4PL, Control Tower and Supply Chain activities that KLG-ITM carries out, Sinotrans is a very important partner. Partly because it has a branch in almost every city in China, as well as in almost all Southeast Asian countries. They are therefore also the largest logistics service provider in Asia.
Sinotrans sees KLG Europe’s employees, customers, suppliers and exclusive agent / partner network as the ideal stepping stone for its development in Europe. KLG has daily departures with groupage and partial shipments to almost every destination in Europe and combines its own cars and charters for delivery on wheels and both agents and hub-and-spoke networks for distribution of the last mile. The strong geographical coverage within the European continent of KLG Europe combined with the strength of Sinotrans in Asia offers customers of both companies an edge over the competition. Both parties see many similarities in each other’s business operations and visions and have enormous potential in integrated services for their existing and potential customers.
The activities of KLG Europe will be continued under the well-known company name KLG Europe and the takeover has no consequences for personnel, management and partners, so that all existing contacts remain unchanged for all parties involved.
Ad and Kees Kuijken remain employed by KLG Europe for the time being and guarantee a good transfer of the entire organization. Afterwards, both gentlemen also remain available for the company in an advisory capacity.
Mr Erik Loijen (current General Manager KLG Europe Venlo) has been appointed as the new CEO and will be ultimately responsible for all twelve European branches of KLG Europe (more than 1100 employees).
With headquarters in Beijing, Sinotrans has been active in China for more than 60 years when it became a publicly traded company in 2003 and has since then been able to build an even greater brand awareness and customer base. Sinotrans is now the largest integrated logistics service provider in China with as main activities forwarding, logistics, storage and terminal services, leasing of logistics equipment and other activities (including shipping, trucking and express service).
Sinotrans has the largest logistics network on mainland China with branches in all provinces and major cities. It is Sinotrans ’strategy to build a leading integrated logistics platform worldwide. To further shape this global strategy, Sinotrans is currently working on a substantial expansion of their overseas network, including agent networks in developing countries and property networks in developed countries, including Europe, Australia etc.
At the end of 2018, Sinotrans’ sales were around $ 10 billion and a total assets of $ 9 billion. Sinotrans is listed on both the Hong Kong Stock Exchange and the Shanghai Stock Exchange.
Comments are closed.