AD Ports takes a majority stake in shipping companies based in Egypt

AD Ports Group has completed the acquisition of a 70% stake in Transmar International Shipping Company (Transmar) and Transcargo International SAE (TCI).

The total purchase price (enterprise value) is AED514 million ($140 million).

KPMG LG acted as financial advisor, PwC as commercial advisor and Matouk Bassiouny and Hennawy as legal advisor to AD Ports.

EFG-Hermes acted as exclusive financial advisor and White & Case acted as legal advisor to Transmar and TCI for this acquisition.

This is the first international acquisition made by AD Ports.

The company said the acquisition will provide a market-leading platform for future growth in container, cargo and port operations in Egypt, North Africa and the Gulf regions, and along the entire Red Sea.

Ad Ports expects Transmar and TCI to generate revenue and EBITDA of approximately $137 million and $65 million, respectively, for the year 2022.

READ: AD Ports expands further with multipurpose terminal in Egypt

“The successful completion of this international acquisition is another important step in our journey of global growth and market expansion, in line with the vision of our thoughtful leadership,” said Captain Mohamed Juma Al Shamisi, Group Managing Director and CEO. AD Ports.

“AD Ports Group prides itself on its proven ability to invest in value-added partnerships and acquisitions that enhance our service portfolio and provide new business connections to our global customers.

“This acquisition gives us a controlling position in two regional market leaders and strengthens our presence along key trade lanes.

“We see a significant opportunity to leverage the expertise and experience of Transmar and TCI to enhance our business offering in the Gulf region and North Africa.”

Transmar is a regional container shipping company that operates in the Middle East, the Red Sea, the Persian Gulf and the eastern coast of Africa.

Ports along its routes include Adabiya and Sokhna in Egypt; Jeddah, Jubail and Dammam in the Kingdom of Saudi Arabia; Aqaba in Jordan; Port Sudan in Sudan; and Djibouti in Djibouti, Port of Khalifa and Jebel Ali in the United Arab Emirates.

TCI is a terminal operator and stevedoring company specializing in project cargo handling, heavy load hauling, breakbulk haulage, industrial breakbulk haulage, general cargo and container handling, as well as warehousing and storage facilities.

It is the largest operator and the only container operator in Adabiya Port.

In August, AD Ports announced its financial results for the second quarter of the year, with a 59% increase in net profit.

Net profit growth accelerated to 59% year-on-year, reaching AED300 million ($82 million) in the second quarter of 2022, resulting in 49% year-on-year growth for the first half of 2022 .