LBC buys into 2 logistics firms to strengthen lead
MANILA, Philippines – LBC Express Holdings Incorporated is acquiring stakes in two logistics companies in a bid to strengthen its position as the country's leading firm for courier services, cargo logistics, payments, and remittances.
LBC told the Philippine Stock Exchange (PSE) on Tuesday, March 20, that it has signed a deal to acquire a 30% stake in Orient Freight International Incorporated (OFII) for P218.8 million.
"This is a strategic investment for LBC as we continue to move toward expanding our business and maintaining our number one position in the industry," LBC chief executive Mike Camahort said in the disclosure.
"Having a stake in OFII will yield LBC enhanced economies of scale, while also achieving improved cost efficiency in certain subsectors of our business where we see a great deal of growth prospects," Camahort added.
OFII is a leading freight forwarder and cargo handler in the Philippines and in Southeast Asia. (READ: LBC in talks to acquire logistics firms)
Services of OFII include air freight, sea freight, land transport, container yard, customs clearance, container freight station, logistics management, warehousing, and domestic distribution.
LBC also announced that it is buying 86.11% of QuadX Incorporated, a digital logistics company that owns, maintains, and operates e-commerce websites like Shipping Cart, Check Me Out, and XPost.
"Our vision for the next few years is to pave the way for digital logistics in the Philippines, and continue to lead the industry," Camahort said.
In 2017, QuadX transaction volumes surged by 330%, with 280,000 average monthly transactions in the 1st quarter.
QuadX operates 8 hubs and employs 1,200 delivery couriers. It also serves more than 25,000 merchants, comprised mostly of small and medium enterprises. – Rappler.com