Abu Dhabi-based AD Ports Group has announced that it has reached an agreement to acquire a 70% equity stake in International Associated Cargo Carrier BV, which wholly owns two Egypt-based maritime companies, Transmar International Shipping Company and Transcargo International (TCI).
The total purchase consideration (Enterprise Value) of this transaction amounts to AED514 million ($140 million).
The first international acquisition realised by AD Ports Group will be fully funded from AD Ports Group's existing cash reserves, which stood at over AED3 billion as of March 31, 2022.
Transmar is a regional container shipping company that operates across the Middle East, Red Sea, Arabian Gulf and Eastern Coast of Africa. In 2021, Transmar handled 109,000 TEUs.
TCI is a terminal operator and stevedoring company, mainly operating out of the Adabiya Port, where it is the exclusive container operator. Its two lines of business are container and bulk cargo services. In 2021, TCI handled 92,000 TEUs and 1.2 million tonnes of bulk cargo.
Together, Transmar and TCI reported LTM revenue and ebitda of AED325 million and AED108 million, respectively. For full-year 2022, management is on track to deliver triple-digit growth year-on-year driven by both volume and rate increases.
These synergistic and value-accretive acquisitions provide AD Ports Group with a market-leading platform for further growth opportunities in Egypt, but also in the entire Red Sea and Gulf regions. The El Ahwal family and their executive team will remain in the management 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 milestone in our ambitious international expansion plan."
"This acquisition will support our wider growth targets for North Africa and the Gulf region and broaden the portfolio of services we are able to offer in those markets," he noted.
"AD Ports Group continues to diversify and take bold steps to expand our global reach, in line with the vision and guidance of our wise leadership. We look forward to working with the two new Egypt-based operations and bringing them into the AD Ports Group family," he added.
Managing Director and Group CEO Captain Mohamed Juma Al Shamisi said: "AD Ports Group continues to build up its presence in Egypt as part of our wider strategy for global expansion. The acquisition of Transmar and TCI, which both have strong regional presences and deep client relationships, is another key step in increasing our geographical 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, thanks to the guidance and continuous support of our wise leadership, to boost trade and economic growth for customers and communities along these routes."
KPMG LG acted as the financial advisor, PwC as the commercial advisor and Matouk Bassiouny and Hennawy as the legal advisor to AD Ports Group in these transactions.
EFG-Hermes acted as the exclusive financial advisor and White & Case acted as the legal advisor to Transmar and TCI on this acquisition.
This deal is the latest in a series by AD Ports Group in the Egyptian maritime industry, including agreements with the Egyptian Group for Multipurpose Terminals for the joint development and operation of Egypt's Ain Sokhna Port and an agreement with the General Authority for Red Sea Ports for the development, operation, and management of cruise ship berths at Sharm El Sheikh Port.