MPIC buys Ace Logistics for P280 M

Metro Pacific Investments Corp. (MPIC) has acquired another logistics company, less than a year since making its foray into the sector.

In a disclosure to the Philippine Stock Exchange (PSE) yesterday, MPIC said its subsidiary PremierLogistics Inc. had signed a definitive agreement to acquire certain assets and business of Ace Logistics for P280 million.

MPIC is hoping to finalize the deal next month.

“The closing of the transaction is subject to the satisfaction of certain conditions precedent, which the parties intend to fulfill within the month of February.

The conditions precedent include, among others, the sale by Ace of identified logistics assets, the novation of certain key contracts of Ace with its clients, and the transfer of certain key officers and employees of Ace to Premier,” MPIC said

MPIC shall make an initial payment atthe closing of the transaction.

As part of the agreement, the controlling shareholder of Ace will likewise acquire a 10 percent interest in Premier.

Ace is engaged in various aspects of the logistics business such as warehousing, courier express and parcel delivery, e-commerce delivery, trucking, freight forwarding, customs brokerage and domestic shipping.

It also has a strong presence in pre-delivery inspection in the automotive industry, which Premier intends to expand, MPIC said in its disclosure.

The move expands MPIC’s business into the logistics business, which continues to offer attractive returns in view of the strong demand in the sector.

In May, MPIC made its foray into the logistics business through the acquisition of the assets of Basic Logistics Corp., A1Move Logistics, Inc., Philflash Logistics Inc. and BasicLog Trading and Marketing Enterprises for P2.17 billion.

The listed infrastructure firm made a bet on the logistics industry because it is an unregulated business compared to its water utility and tollways ventures.