Logistics giant LBC Express Holdings Inc. is in talks with potential foreign strategic partners, which would help it expand and acquire new technologies, a ranking executive said.
Miguel Camahort, LBC president and CEO, said taking on a partner was “part of our strategy,” adding that the company was also open to domestic tie-ups.
“We’re not closing the doors on anything, local or foreign [partners are welcome]. We are very much open,” Camahort told reporters at the launch of the LBC-Western Union partnership for payout services.
LBC, which traces its roots to the post-World War II era, is a major player in a fragmented logistics sector.
The industry has been consolidating with the help of conglomerates. Big groups like Ayala Corp., SM Investments Corp. and Metro Pacific Investments Corp. are recognizing the value that logistics plays in an archipelago like the Philippines.
Camahort said LBC was looking for a strategic partner, one that would help it expand, offer new services and ideas.
“It’s not about the financial component,” he said.
The talks come as its rivals begin to take on large backers. 2GO Group Inc. recently saw an ownership change with the entry of businessman Dennis Uy, owner of Phoenix Petroleum Philippines, and the Sy family’s SM Investments.
LBC, which is listed on the Philippine Stock Exchange, has a market value of about P22.8 billion. In August, it raised $50 million through the issuance of seven-year convertible securities to CP Briks Pte. Ltd.
LBC is a full-service logistics company with a network of over 6,400 branches, hubs, warehouses, partners and agents across 30 countries.
Its service revenues in the first semester of 2017 hit P4.9 billion, up 18.7 percent. The increase came from the growth of its retail and corporate logistics services.