Infrastructure conglomerate Metro Pacific Investments Corp. said Wednesday it completed the acquisition of assets and key contracts of logistics company Ace Logistics Inc. for P280 million.
Metro Pacific said in a disclosure to the stock exchange unit PremierLogistics Inc. completed the asset purchase agreement with Ace Logistics. The initial payment was delivered on closing, while succeeding payments would be done annually until 2020.
After the closing of the transaction, the principal stockholder of Ace will subscribe to 10-percent stake in PremierLogistics.
The transaction involves the sale by Ace Logistics of identified logistics assets, the novation of key contracts of Ace with its respective clients, the execution of new contracts required to ensure the continued operations of the business under PremierLogistics and transfer of key officers and employees to PremierLogistics.
Ace Logistics is engaged in the business of logistics, including warehousing, courier express and parcel delivery, e-commerce delivery, trucking, freight forwarding, customs brokerage and domestic shipping. Ace also has a strong presence in pre-delivery inspection in the automotive industry, which Premier intends to expand.
Ace Logistics is the second logistics company to be acquired by Metro Pacific since the conglomerate ventured into the business last year.
Metro Pacific acquired the assets of mid-sized corporate logistics provider Basic Logistics in May 2016, as it saw strong demand for the logistics services in the country.
It also formed a new company called Metro Pacific Movers Inc. in joint venture with the shareholders of Basic Logistics to provide logistics, shipping, freight forwarding and e-commerce services.
Metro Pacific owns a 76-percent interest in MPMI, while the owners of Basic Logistics control the remaining 24 percent and the management of the business.
Metro Pacific earlier said it was willing to invest P5 billion in the logistics business over the next five years.