mergers and acquisitions

Ayala’s AC Logistics to acquire 60% of AIR21 Group

Ralf Rivas
Ayala’s AC Logistics to acquire 60% of AIR21 Group

ACQUISITIONS. AC Logistics signs an investment agreement with Air 21 Holdings, Inc (AHI). AC Logistics was represented by (from L-R) Norma P. Torres, Chief Commercial Officer for AC Logistics, Rene D. Almendras, President and CEO of AC Logistics, and Janet A. Bautista, VP for Business Development. Air 21 Holdings Inc. was represented by (from L-R) Antonio L. Tañada, Investment Advisor; Alberto D. Lina, AHI Chairman; and Lucia Jane Lina, AHI Director.

AC Logistics/Ayala Corporation

(1st UPDATE) AC Logistics says in a stock exchange filing that it signed an investment agreement with Alberto Lina, who owns Air 21 Holdings

Ayala Corporation subsidiary AC Logistics is acquiring 60% interest of AIR21 Group, as the pandemic forced customers to buy goods online and pushed logistics companies to ramp up expansion.

AC Logistics said in a stock exchange filing on Friday, November 12, that it signed an investment agreement with Alberto Lina, who owns Air 21 Holdings (AHI), a holding company which will consolidate ownership in eight subsidiaries of the Air 21 Group.

The deal is worth P6 billion, according to Ayala Corporation.

The companies involved in door-to-door services, freight forwarding, warehouses, and waste logistics management are:

  • Airfreight 2100, Incorporated 
  • Air 2100, Incorporated 
  • U-Freight Philippines
  • U-Ocean, Incorporated
  • Cargohaus, Incorporated
  • LGC Logistics, Incorporated
  • Waste & Resources Management, Incorporated
  • Integrated Waste Management, Incorporated

AC Logistics said that the deal will allow the company to “offer a full range of logistics services to clients and provide competitive services.”

“The partnership with AHI gives AC Logistics an end-to-end logistics platform that is capable of serving the diverse supply chain requirements of high-growth industries and complements Ayala’s initial foray in logistics through Entrego. We are delighted to have this opportunity to work with the Lina family,” said Fernando Zobel de Ayala, Ayala Corporation president and chief executive officer.

Ayala Corporation entered the logistics business back in 2018 after it launched Entrego Fulfillment Solutions, an end-to-end fulfillment solutions company. It is a joint venture between AC Infrastructure and a subsidiary of the Global Fashion Group.

AC Logistics president Rene Almendras said that the pandemic’s disruption of the logistics sector “strengthened our conviction in investing in the logistics sector.”

“More than ever, logistics is a critical component of trade, particularly as we recover from the effects of the pandemic. We are very excited to improve and redefine practices with the use of new technology and with the needs of Filipinos at the core of our aspirations,” Almendras said.

Lina, for his part, said: “Ayala’s businesses have proven leadership in their respective industries. The management expertise from the Ayala group combined with our extensive experience in logistics will be transformative not just for our group but for the industry as well.” – Rappler.com

Ralf Rivas

A sociologist by heart, a journalist by profession. Ralf is Rappler's business reporter, covering macroeconomy, government finance, companies, and agriculture.