Incentive Concepts Acquires KLF Group
Supplier Incentive Concepts (PPAI 212912, S10), headquartered in St. Louis, Missouri, has acquired KLF Group, a Canada-based, full-service rewards provider, effective August 1. Under the finalized deal, KLF Group and Incentive Concepts will operate as sister companies covering North America, with Incentive Concepts managing business in the U.S. and KLF managing business in Canada. KLF’s chief operating officer, Hyun-Hee Pyun will continue to lead the company.
In a statement on the acquisition, Incentive Concepts notes, “The new partnership is underscored by multiple synergies, with Incentive Concepts and KLF Group sharing many of the same values and workplace culture attributes. Both companies are fully committed to fostering an environment of empowerment where ideas are valued, continuous individual growth is encouraged and the sky is the limit. Both companies recognize the opportunities this partnership presents and are excited at the possibilities that lie ahead.”
KLF Group was founded in 2005 by François Fortier. Its full-service approach in the premium loyalty and incentive industries—which includes data-enabled analytics, best-in-class distribution, an integrated rewards marketplace and Loyalty Source, its sourcing and account management division—has helped some of Canada’s most prominent organizations improve the quality of their rewards programs while also reducing operating costs. As a result, KLF Group has been recognized time and time again for its business performance, most recently being included in Globe and Mail’s 2019 list of the Top Growing Companies in Canada.
Incentive Concepts notes that in joining forces, it gains an opportunity to further bolster its customer service and reward fulfillment capabilities with KLF Group’s proprietary supplier technologies and state-of-the-art systems. KLF represents more than 400 brands, inventories all products in a warehouse it owns and operates, and prides itself on having industry-leading response and ship times.
“We were intrigued and excited about this opportunity from the start,” says Joe Reinberg, president and CEO of Incentive Concepts. “Both companies share similar cultures and our management teams meshed very well. Our strengths complement each other in a way where, once properly integrated, both companies will possess increased capabilities to provide customers, as well as suppliers, a more robust offering of solutions.”
In turn, KLF Group brings in-house expertise regarding rewards program management. The company has overseen several of Canada’s most prestigious loyalty programs, and through the acquisition, it gains access to Incentive Concepts’ proven marketing strategies and best practices.
"We felt that Incentive Concepts was the perfect partner to take our incentive programs to the next level," says Pyun. "With their experience and our expertise, we will be able to learn from one another and perfect our services as leaders in our industry, while customers will continue to be served by the same Canadian team in the same place."