MANILA, Philippines — The Ayala Group is looking to further expand its logistics business as it focuses on becoming a major player in the lucrative and less-regulated industry, a ranking executive said.
The diversified conglomerate, through its logistics arm AC Logistics Holdings Corp., is keen on acquiring at least one other company to expand its business.
“We are buying at least one cold storage company,” AC Logistics president and CEO Jose Rene Almendras Almendras said on the sidelines of a recent meeting with editors and executives of The STAR.
He said the cold storage business has grown significantly during the pandemic, especially with the need for vaccine storage facilities.
Almendras said while mobility restrictions have eased, the pandemic isn’t over and the need for vaccine storage will continue, especially with booster requirements.
Last August, AC Logistics reached financial close for the acquisition of 60 percent shares in Air 21 Holdings Inc. (AHI) for P6.06 billion.
“AC Logistics is a realization of Ayala’s commitment to create shared value with our stakeholders. I have full confidence that the vision we created together with Mr. Lina will come to life through our teams’ shared experiences and unique expertise,” Almendras said.
In November last year, AC Logistics and Air 21 chairman Alberto Lina signed the investment agreement for the acquisition.This comes just less than five years since the Ayala Group started in the logistics business in 2018.
Back then, Ayala launched Entrego Fulfillment Solutions Inc., and has since expanded from last-mile delivery to domestic freight forwarding, contract logistics, and warehouse operations.
Ayala said the acquisition of Air21 Holdings provides the group with a more robust capability to provide logistics services across the entire supply chain, including door-to-door express delivery, multiple types of warehouse operations, management, and digitization, international and domestic freight forwarding, and waste management services.
In recent years, Ayala has been focusing on fewer businesses and deepening its involvement, after a decade of expansion.
Ayala’s core businesses are banking, telecommunications, property and most recently, renewable energy.
In the area of infrastructure, Ayala wants to focus on logistics instead of traditional infrastructure such as expressways.
It earlier sold its 100 percent stake in MCX Project Co. Inc. to the Villar Group. The corporation holds the concession assets, rights and obligations under the concession agreement for the Muntinlupa-Cavite Expressway Project (MCX).