Equipment being handled at TCI
AD Ports Group has reached an agreement to acquire a 70% equity stake in International Associated Cargo Carrier B.V, marking the first international acquisition realised by the company.
International Associated Cargo Carrier B.V. wholly owns two Egypt-based maritime companies, Transmar International Shipping Company and Transcargo International S.A.E. (TCI).
H.E. Falah Mohammed Al Ahbabi, chairman of the 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.
“The 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.”
The total purchase consideration of this transaction amounts to AED514m (US$140m) and will be fully funded from AD Ports Group’s existing cash reserves.
Transmar is a regional container shipping company that operates across the Middle East, Red Sea, Arabian Gulf and Eastern Coast of Africa, handling 109,000 teu in 2021.
TCI is a terminal operator and stevedoring company that mainly operates out of the Adabiya Port, where it is the exclusive container operator.
Its two lines of business are container and bulk cargo services and, in 2021, TCI handles 92,500 teu and 1.2m tonnes of bulk cargos.
Together Transmar and TCI reported LTM revenue and EBITDA of AED$325m (US88.5m) and AED$108m (US$29m), 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 platform for further growth opportunities in not only Egypt, but also the entire Red Sea and Gulf regions.
Captain Mohamed Juma Al Shamisi, managing director and group CEO of AD Ports Group, said: “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 well-placed, thanks to the guidance and continuous support of our wise leadership, to boost trade and economic growth for our customers and communities along these routes.”
The El Ahwal family and their executive team will remain in management of the companies.
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.
Al Ahbabi added: “AD Ports Group continues to diversify and take bold steps to expand our reach around the world, 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.”
