The Metro Pacific group has sealed its P280-million purchase of the business of Ace Logistics, expanding its footprint in the logistics business.
PremierLogistics Inc., a subsidiary of MetroPac Movers Inc., acquired the assets and key contracts of Ace Logistics.
“The assets purchased are used by Ace in the logistics business. PremierLogistics intends to use the assets to expand the list of logistics services it offers and to widen its client base,” Metro Pacific Investments Corp. said in a disclosure to the Philippine Stock Exchange yesterday.
Ace’s business covers warehousing, courier express and parcel delivery, e-commerce delivery, trucking, freight forwarding, customs brokerage and domestic shipping. It also has a strong presence in the pre-delivery inspection space in the automotive industry, which Premier intends to expand.
The transaction was carried out through an asset purchase agreement which was closed on a “conditional” basis.
“The parties agreed on a conditional closing, with additional deliverables to be completed within an agreed period after the closing of the transaction. A portion of the initial payment was withheld and shall be delivered upon completion of all deliverables,” the disclosure said.
The P280-million purchase price—which was based on the appraised value of the assets and the potential earnings of the businesses – is payable in several tranches. An initial payment was made on closing while succeeding payments are payable yearly until 2020.
The deal involved the following:
Sale by Ace 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
Transfer of key officers and employees of Ace to PremierLogistics.
After the closing of the transaction, the disclosure said the principal stockholder of Ace would subscribe to shares of stock of PremierLogistics equivalent to 10 percent of the outstanding capital stock of PremierLogistics.
MPIC teamed up with Basic Logistics last year to create the logistics investment holding firm Metro Pacific Movers. It has allotted P5 billion for the expansion of this unit over a five-year period.