AC Logistics set to acquire 60% stake in AIR21 Group
AC Logistics signed an investment agreement with Air 21 Holdings, Inc (AHI). AC Logistics was represented by (from L-R) Norma P. Torres, Chief Commercial Officer for AC Logistics, Rene D. Almendras, President and CEO of AC Logistics, and Janet A. Bautista, VP for Business Development. Air 21 Holdings Inc. was represented by (from L-R) Antonio L. Tañada, Investment Advisor; Alberto D. Lina, AHI Chairman; and Lucia Jane Lina, AHI Director. AC Brand and Reputation Management Team file photo
Manila, Philippines: AC Logistics Holdings Corp. (“AC Logistics”), a wholly-owned subsidiary of Ayala Corporation, signed an Investment Agreement with Mr. Alberto D. Lina (“Mr. Lina”), Air 21 Holdings Inc. (“AHI”), Airfreight 2100, Incorporated (“AIR21”), Air 2100, Inc. (“AIR21 Subic”), UFreight Phils., Inc. (“U-Freight”), U-Ocean, Inc. (“U-Ocean”), Cargohaus, Inc. (“CHI”), LGC Logistics, Inc. (“LGC”), Waste & Resources Management, Inc. (“WARM”), and Integrated Waste Management, Inc. (“IWMI”) for the acquisition of a 60% interest in AHI, subject to the satisfaction of closing conditions precedents.
AHI is a holding company owned by Mr. Lina which will have controlling interests in eight operating companies under the AIR21 Group that are engaged in a broad range of logistics services that include express door-to-door service, international and domestic freight forwarding, warehousing and waste logistics management.
“The partnership with AHI 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 Corporation President and Chief Executive Officer.
Mr. Lina, Founder and Chairman of AHI welcomes the partnership with AC Logistics. “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,” said Mr. Lina.
This investment allows AC Logistics to participate and service the needs of the 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.
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.
“The decision to enter the logistics sector was a deliberate move on our part. We have been looking at the ecosystem in the past, carefully studying the opportunities where we can invest and
make a difference. 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. We are very excited to improve and redefine practices with the use of new technology and with the needs of Filipinos at the core of our aspirations,” said Rene D. Almendras, President of AC Logistics.
AC Logistics aspires to become a world-class logistics player in the country with digitally empowered end-to-end logistics capability similar to what is now available in other countries.
BPI Capital Corp. and Fortman Cline Capital Markets Ltd. acted as financial advisors for AC Logistics and AIR21 Group, respectively.