Ayala’s AC Logistics to acquire 60% of Air 21 Holdings for P6 billion

AC Logistics Holdings Corp. is acquiring a majority interest in logistics services firm Air 21 Holdings Inc. as it aims to expand its presence in the industry, banking on the need for a more integrated logistics network due to supply chain disruptions caused by the COVID-19 pandemic.

In a Friday disclosure with the Philippine Stock Exchange, parent firm Ayala Corp. said its wholly-owned subsidiary AC Logistics signed an investment agreement with Alberto Lina, the chairman and founder of Air 21 Holdings, to acquire a 60% interest in Lina’s company for P6.06 billion.

Air 21 Holdings will then consolidate Lina’s equity interests in Air 21 Group’s units, namely Airfreight 2100, Incorporated, Air 2100 Inc. (Air21 Subic), U-Freight Phils. Inc., U-Ocean Inc., Cargohaus Inc., LGC Logistics Inc., Waste & Resources Management Inc., and Integrated Waste Management Inc.

The transactions contemplated in the investment agreement are subject to the satisfaction of closing conditions precedent, according to Ayala Corp.

This investment allows AC Logistics to participate and service the needs of growing and evolving industries and ecosystems. The company’s goal is to offer a full range of logistics services to more clients and to provide competitive services by leveraging on the strengths of companies in its portfolio, it said.

The pandemic disrupted the supply chain and underscored the need for a more robust and integrated logistics network across the country. Warehousing facilities suited to the needs of critical industries coupled with investment in technologies that drive operational efficiencies are critical to delivering better services across the supply chain and to spur faster economic recovery, it added.

“The partnership with Air 21 Holdings gives AC Logistics an end-to-end logistics platform that is capable of serving the diverse supply chain requirements of high-growth industries and complements Ayala’s initial foray in logistics through Entrego. We are delighted to have this opportunity to work with the Lina family”, said Fernando Zobel de Ayala, Ayala Corp. president and chief executive officer.

The acquisition of 60% interest in Air 21 Holdings will be through acquisition of secondary shares and subscription to primary shares, subject to closing conditions precedent.

“Ayala’s businesses have proven leadership in their respective industries. The management expertise from the Ayala group combined with our extensive experience in logistics will be transformative not just for our group but for the industry as well,” Lina said.

“The supply chain disruptions and lockdowns we faced in 2020 strengthened our conviction in investing in the logistics sector, which we started back in 2017. More than ever, logistics is a critical component of trade, particularly as we recover from the effects of the pandemic,” said Rene Almendras, president of AC Logistics.

BPI Capital Corp. and Fortman Cline Capital Markets Ltd. acted as financial advisors for AC Logistics and AIR21 Group, respectively. — DVM, GMA News