Abu Dhabi-based AD Ports Group announced that it has reached an agreement to acquire a 70% stake in International Associated Cargo Carrier BV, which wholly owns two Egypt-based shipping companies, Transmar International Shipping Company and Transcargo International (TCI ).
The total purchase price (enterprise value) of this transaction is AED514 million ($140 million).
The first international acquisition made by AD Ports Group will be entirely financed from the existing cash reserves of AD Ports Group, which amounted to more than AED 3 billion as of March 31, 2022.
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. In 2021, Transmar handled 109,000 TEUs.
TCI is a terminal operator and stevedoring company, operating primarily out of the port of Adabiya, where it is the exclusive container operator. Its two segments are Container Services and Bulk Cargo. In 2021, TCI handled 92,000 TEUs and 1.2 million tonnes of bulk cargo.
Together, Transmar and TCI reported LTM revenues and ebitda of AED 325 million and AED 108 million, respectively. For the full year 2022, management is on track to deliver triple-digit year-over-year growth, driven by both volume and rate increases.
These synergistic and value-creating acquisitions provide AD Ports Group with a market-leading platform for new growth opportunities in Egypt, but also throughout the Red Sea and Gulf regions. The El Ahwal family and its management team will remain in charge of the companies.
AD Ports Group Chairman, Falah Mohammed Al Ahbabi, said: “This is the first overseas acquisition in AD Ports Group’s history and an important step in our ambitious international expansion plan. .
“This acquisition will support our broader growth objectives for North Africa and the Gulf region and expand the portfolio of services we are able to offer in these markets,” he noted.
“AD Ports Group continues to diversify and take bold steps to expand its global reach, in line with the vision and guidance of our wise leadership. We look forward to working with the two new operations based in Egypt and integrating them into the AD Ports group. family,” he added.
Group Managing Director and CEO, Captain Mohamed Juma Al Shamisi said, “AD Ports Group continues to strengthen its presence in Egypt as part of our broader global expansion strategy. The acquisition of Transmar and TCI, both of which have strong regional presences and deep customer relationships, is another key step in expanding our geographic footprint and bringing the benefits of our integrated portfolio of services to more customers. “
“Egypt and the Red Sea coast are increasingly important parts of our global maritime offering, and we believe we are well placed, with the continued guidance and support of our able leadership, to boost trade. and economic growth for customers and communities along these routes.”
KPMG LG acted as financial advisor, PwC as commercial advisor and Matouk Bassiouny and Hennawy as legal advisor to AD Ports Group in these transactions.
EFG-Hermes acted as exclusive financial advisor and White & Case acted as legal advisor to Transmar and TCI for this acquisition.
This agreement is the latest in a series concluded by AD Ports Group in the Egyptian maritime industry, including agreements with the Egyptian group of multi-purpose terminals for the joint development and operation of the Egyptian port of Ain Sokhna and an agreement with the General Authority of Red Sea Ports for the development, operation and management of cruise ship berths at the Port of Sharm El Sheikh.
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