AC LOGISTICS, Inc., the logistics arm of Ayala Corp., has reached financial close for the acquisition of 60% shares in AIR21 Holdings, Inc. (AHI) for P6.06 billion, the firm disclosed on Tuesday.
Jose Rene Gregory D. Almendras, president and chief executive officer of AC Logistics, said that he has “full confidence that the vision we created together with Mr. Lina will come to life through our teams’ shared experiences and unique expertise.”
In November 2021, AC Logistics and AHI Chairman Alberto D. Lina signed the investment agreement governing the terms of the acquisition.
On Aug. 30, the parties concluded the transaction by signing the closing documents.
AC Logistics acquired 2.54 billion or 60% shares of AHI with a price per share placed at less than 10% of the Ayala firm’s total equity. The amount of consideration given was P6.06 billion, which was paid upon the financial close.
Ayala started in the logistics business in 2018 when it launched Entrego Fulfillment Solutions, Inc., and has since expanded from last-mile delivery to domestic freight forwarding, contract logistics, and warehouse operations.
“The acquisition of AHI provides the Ayala Group with a more robust capability to provide logistics services across the entire supply chain, including door-to-door express delivery, multiple types of warehouse operations, management, and digitization, international and domestic freight forwarding, and waste management services,” the company said in a press release.
Mr. Lina was quoted as saying: “From our decades of service excellence in the logistics industry, the Lina Group has nurtured a family of talented and resilient experts who are committed to deliver delight to our loyal customers. We are extremely excited to partner with the AC Logistics team to grow to greater heights in the future.”
AIR21 has controlling interests in Airfreight 2100, Inc., Air 2100, Inc., U-Freight Philippines, Inc., U-Ocean, Inc., Cargohaus, Inc., LGC Logistics, Inc., Waste & Resources Management, Inc., and Integrated Waste Management, Inc.
Ayala said that the acquisition can help address some of the challenges related to pharmaceutical and healthcare access, food preservation, and proper waste management.
On the stock exchange on Tuesday, Ayala shares slipped by 1.81% or P13 to P707 apiece. — Justine Irish D. Tabile