Abu Dhabi Ports Group announced reaching an agreement to acquire a 70% equity stake in International Associated Cargo Carrier, which wholly owns two Egypt-based maritime companies, Transmar International Shipping Company and Transcargo International (TCI).
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The total purchase consideration (Enterprise Value) of this transaction amounts to AED514 million ($140 million).
The acquisition will be fully funded from AD Ports Group's existing cash reserves, which stood at over AED3 billion ($816 million) as of March 31.
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 twenty-foot equivalent units (TEU).
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 tons of bulk cargo.
In the last 12 months, Transmar and TCI together reported revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA) of AED325 million ($88.4 million) and AED108 million ($29.3 million), respectively.
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.
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.â€
It supports the group’s wider growth targets for North Africa and the Gulf region and broadens the portfolio of services in those markets.
Captain Mohamed al-Shamisi, Managing Director and Group CEO, AD Ports Group, said that AD Ports Group continues to build up the group’s presence in Egypt as part of its wider strategy for global expansion.
The acquisition of Transmar and TCI, which both have strong regional presence and deep client relationships, is another key step in increasing the Port’s geographical footprint and bringing the benefits of its 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.†■