Metro Pacific subsidiary buys Ace Logistics for P280M

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A subsidiary of Metro Pacific Investments Corporation (MPIC), PremierLogistics, Inc., acquired certain assets and business of Ace Logistics, Inc for P280 million.

An MPIC disclosure at the Philippine Stock Exchange said the transaction will be carried out through an asset purchase agreement. The closing of the transaction is subject to certain conditions, which the parties intend to fulfill within February, MPIC added.

The conditions include the sale by Ace of identified logistics assets, the novation of certain key contracts of Ace with its clients, and transfer of certain key officers and employees of Ace to Premier. An initial payment will be delivered to Ace on the closing of the transaction. The controlling shareholder of Ace will also acquire a 10% interest in Premier after the close of the transaction.

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, which Premier intends to expand.

On its website, Ace said it delivered the Precinct Count Optical Scanner or PCOS machines and other election-related equipment for Luzon and their retrieval for the May 2010 elections.

It currently distributes stocks to the more than 150 Puregold Price Club Stores and outlets, and offers complete supply chain management solution to Canon Marketing Philippines.

The assets and business that will be acquired in the transaction will be utilized to further expand MPIC’s logistics business, which continues to offer attractive returns in view of the strong demand in the sector, MPIC said.