Embarq Corp. (EQ) has agreed to sell its supply chain, distribution and deployment subsidiary known as EMBARQ Logistics, to KGP Telecommunications.
The Minnesota-based KGP is a provider of supply chain services, telecommunication products and integrated solutions. The deal won’t be official until closing conditions and finances are finalized.
As part of the transaction, KGP will provide certain logistics and supply chain services for EMBARQ's core telecommunications operation under a long-term commercial services agreement. The transaction is expected to close before the end of the first quarter.
Following the closing of the transaction, KGP will be one of the country's largest single-source, value-added distributors of equipment and integrated solutions to the telecommunications industry, with a diverse customer base, a broad portfolio of strategic manufacturer relationships, and a national logistics network.
"The acquisition of EMBARQ Logistics will position KGP as a leading provider of supply chain and distribution services, with an unmatched network of distribution facilities and skilled professionals," said Kathleen G. Putrah, CEO of KGP. "The combination of the business operations will provide KGP with immediate scale and position us for long-term success and relevancy in our industry."
"The consummation of the sale to KGP and the long-term commercial services agreement will enable EMBARQ to refine its focus on its core consumer, business and wholesale markets," said Tom Gerke, CEO of EMBARQ. "In addition, I expect KGP's expertise and the assets of EMBARQ Logistics to be a very effective combination in the supply chain marketplace. It will be a win for both companies."
