Home » 3PL/4PL » Logistics firm Worklink is Chelsea Logistics’ latest acquisition

Chelsea Logistics Holdings Corp. (CLC) has acquired local logistics company Worklink Services, Inc. (WSI) in line with its ongoing effort to expand operations and create more value for its clients.

CLC in a regulatory disclosure said on November 8 that it has acquired 100% of the issued and outstanding shares of WSI, or 475,000 shares, from its shareholders.

The listed Philippine company said the new acquisition is “in line with CLC’s strategy to expand its business and market reach, and provides an opportunity for CLC to increase its shareholder value.”

“In the past years, WSI has successfully established itself as a domestic logistics solution provider for various industries, with expertise in the management and distribution of a wide range of merchandise such as documents, food, garments and industrial equipment. The acquisition will present opportunities for synergies by WSI with the rest of the companies in the CLC group,” the company said.

The price per share is less than 10% of CLC shareholders’ equity. The purchase price was determined based on the agreed valuation, anchored on forecasts of WSI plus cash and cash equivalents and trade accounts receivables less trade accounts payables, all as of October 15, 2017, the cut-off date.

In a press statement, CLC president and chief executive officer Chryss Alfonsus Damuy said WSI will “augment our logistics and manpower businesses as well as create additional synergy within the group.”

WSI is a privately owned Filipino corporation, established in 1999 and engaged in total logistics management, providing ground courier, sea freight and airfreight services across the country. WSI also offers trucking, warehousing, and special projects management, such as event, manpower, trade merchandising, and drop box management.

“The acquisition will prove even more valuable in steering an experienced and competent management and staff, who have been in the logistics business for more than 20 years,” Damuy stated.

CLC, from the capital it raised from its initial public offering, has earmarked P1.75 billion for fleet expansion; P245 million for the purchase or upgrade of ports, port facilities, containers, machinery and equipment; P3.20 billion for the acquisition of other shipping and logistics firms; and P278 million for general corporate purposes.

“In every investment put into expanding our operations we strive to ultimately provide better shipping and logistics services to Filipino businesses and consumers as well as create more jobs and support the economy’s growth,” Damuy said.

Aside from WSI, CLC also recently acquired domestic ferry operator Starlite Ferries, Inc. In a separate regulatory disclosure, CLC said the deed of absolute sale of the shares of stock was signed on November 9, finalizing the acquisition of 100% of the issued and outstanding shares of the ferry company for P1.6 billion for the P400 price per share. CLC recently secured the approval of the Philippine Competition Commission for the acquisition.

Starlite is a privately owned Filipino corporation engaged in passenger and cargo marine transport. It has 14 passenger and cargo vessels which are presently operating on the routes of Batangas to Calapan; Batangas to Puerto Galera; Roxas to Caticlan; and Roxas to Odiongan.

Last March, CLC, a company under Davao-based businessman Dennis Uy’s Udenna Corporation, also acquired 28.15% indirect economic interests in total supply transportation solutions provider 2GO Group, Inc.

CLC’s shipping transport business is comprised of wholly owned subsidiaries Chelsea Shipping Corp. (CSC) and Trans-Asia Shipping Lines, Inc.

CSC is engaged in the maritime conveyance or carriage of petroleum products, goods, wares and merchandise in the Philippines. Trans-Asia, meanwhile, transports passengers and cargo within Philippine territorial waters or on the high seas.

Image courtesy of Pansa at FreeDigitalPhotos.net

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