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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 Egyptian shipping companies, Transmar International Shipping Company and Transcargo International (TCI).
The total purchase consideration (enterprise value) for the transaction is AED514 million (US$140 million).
AD Ports Group’s first international acquisition will be fully funded from AD Ports Group’s existing cash reserves, which as of March 31, 2022, exceeded AED3 billion.
Transmar is a regional container shipping company with operations in the Middle East, Red Sea, Arabian Gulf and the East Coast of Africa. In 2021, Transmar handled 109,000 TEUs.
TCI is a terminal operator and stevedoring company mainly operating out of Adabiya Port, where it is the exclusive container operator. Its two business lines are container and bulk cargo services. In 2021, TCI handled 92,000 TEUs and 1.2 million tons of bulk cargo.
Transmar and TCI jointly reported LTM revenue and ebitda of AED325 million and AED108 million, respectively. For full-year 2022, management expects triple-digit year-over-year growth driven by volume and rate growth.
These synergistic and value-added acquisitions provide AD Ports Group with a market-leading platform for further growth opportunities in Egypt and throughout the Red Sea and Gulf region. The El Ahwal family and its executive team will remain in the company’s management.
Falah Mohammed Al Ahbabi, Chairman of AD Ports Group, said: “This is the first overseas acquisition in AD Ports Group’s history and an important milestone in our ambitious international expansion plan.”
“This acquisition will support our broader growth goals in North Africa and the Gulf and expand the portfolio of services we can offer in these markets,” he noted.
“Under the vision and guidance of our wise leadership, AD Ports Group continues to diversify and take bold steps to expand our global reach. We look forward to partnering with these two new businesses in Egypt and incorporating them into the AD Ports Group family,” he added.
Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, said: “AD Ports Group continues to build its presence in Egypt as part of our wider global expansion strategy. The acquisitions of Transmar and TCI, both of which have strong regional Reach and deep client relationships are another key step in expanding our geographic footprint and bringing the benefits of our comprehensive service portfolio to more clients.”
“Egypt and the Red Sea coast are an increasingly important part of our global maritime business and we believe that, with the guidance and continued support of our wise leadership, we are well-positioned to facilitate trade and economic growth for our customers and communities along the route. .”
In these transactions, KPMG LG acted as financial advisor, PricewaterhouseCoopers acted as commercial advisor, and Matouk Bassiouny and Hennawy acted as legal advisor to AD Ports Group.
EFG-Hermes acted as exclusive financial advisor to Transmar and TCI and White & Case acted as legal advisor on this acquisition.
The deal is the latest in a series of deals for AD Ports Group in the Egyptian maritime industry, including an agreement with the Egyptian Multipurpose Terminals Group for the joint development and operation of the Egyptian port of Ain Sokhna, and an agreement with the General Authority of Red Sea Ports. An agreement for the development, operation and management of cruise ship berths in the Port of Sharm El Sheikh.
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