Ayala Corp. has completed the acquisition of 60 percent of logistics group Air21 Holdings Inc. for for P6 billion.
The transaction was done through an issuance of exchangeable notes by Air21 chairman Alberto Lina to Ayala unit AC Logistics Corp.
The acquisition caps nine months of formal discussion after the two parties signed the investment agreement in November 2021, which governed the acquisition subject to satisfaction of precedent conditions.
“On Aug.30, 2022, the parties concluded the transaction by signing the closing documents,” the Ayala Group said in a statement yesterday.
Ayala said its acquisition of AHI provides for 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.
Rene Almendras, AC Logistics president, said the addition of the AIR21 Group to the AC Logistics portfolio, together with Entrego, creates synergies that can potentially generate greater operational efficiency and more efficient asset utilization.
“The combination of their respective capabilities puts the Ayala Group in a better position to provide technology driven end-to-end logistics services that can help address some of the challenges related to pharma and healthcare aides access, food preservation, and proper waste management,” he said.
AHI has controlling interests in eight operating companies that include 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. (AIR21 Group).
Ayala’s logistics journey started in 2018 when it launched Entrego Fulfillment Solutions Inc.
Since then, it has expanded from last mile delivery to domestic freight forwarding, contract logistics, and warehouse operations.
“Backed by AIR21 Group’s decades of comprehensive experience in logistics and Ayala’s proven leadership and management expertise, AC Logistics takes a strong stance in providing customers with effective and sustainable end-to-end logistics services across the value chain,” Almendras also said.
AC Logistics was supported by its advisors BPI Capital Corp., Villaraza & Angangco and KPMG; AIR21 Group was supported by its advisor Fortman Cline Capital Markets Ltd. – Ruelle Castro
