A subsidiary of Metro Pacific Investments Corporation (MPIC), PremierLogistics, Inc., has conditionally closed the acquisition of certain assets and businesses of Ace Logistics, Inc.
MPIC disclosed to the Philippine Stock Exchange the conditional closing of the acquisition by PremierLogistics of the assets and key contracts of Ace Logistics. The parties agreed to close the sale on the condition that additional deliverables would be completed within an agreed period after closing the transaction. As such, a portion of the initial payment was withheld, to be released upon completion of all deliverables.
The transaction, which was carried out through an asset purchase agreement, has a cost of P280 million, payable in several tranches annually until 2020.
The agreement involves, among others, the sale by Ace of identified logistics assets; novation of key contracts of Ace with its respective clients; execution of new contracts required to ensure the continued operations of the business under PremierLogistics; and transfer of key officers and employees of Ace to PremierLogistics.
MPIC said PremierLogistics intends to use the assets purchased to expand the list of logistics services it offers and to widen its client base.
Ace 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 that PremierLogistics intends to leverage.
MPIC announced the acquisition last January. The conglomerate is venturing into the logistics business, which it said “continues to offer attractive returns in view of the strong demand in the sector.” It has already acquired the assets of several logistics companies, namely, Basic Logistics Corp.; A1Move Logistics, Inc.; Philflash Logistics Inc.; and BasicLog Trading and Marketing Enterprises, at a total cost of P2.17 billion.
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