AD Ports Group has completed the acquisition of a 70 per cent equity stake in Transmar International Shipping Company (Transmar) and Transcargo International S.A.E. (TCI).
The total purchase consideration (Enterprise Value) amounts to AED514 million ($140 million).
KPMG LG acted as the financial advisor, PwC as the commercial advisor and Matouk Bassiouny and Hennawy as the legal advisor to AD Ports.
EFG-Hermes acted as the exclusive financial advisor and White & Case acted as the legal advisor to Transmar and TCI on this acquisition.
This marks the first international acquisition realised by AD Ports.
The company said the acquisition will provide a market-leading platform for further growth in container, cargo and port operations in Egypt, North Africa and Gulf regions, and along the entire Red Sea.
Ad Ports expects Transmar and TCI to deliver revenue and EBITDA of around $137 million and $65 million, respectively, for full-year 2022.
READ: AD Ports further expands with multipurpose terminal in Egypt
“The successful completion of this international acquisition is another important step in our journey of global growth and market expansion in line with the vision of our wise leadership,” said Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group.
“AD Ports Group prides itself on its proven ability to invest in value-adding partnerships and acquisitions that enhance our portfolio of services and provide new trade connections for our global customers.
“This acquisition provides us with a controlling position in two regional market leaders and enhances our presence along key trade lanes.
“We see significant opportunity for leveraging the expertise and experience of Transmar and TCI to enhance our commercial offering across the Gulf region and North Africa.”
Transmar is a regional container shipping company that operates across the Middle East, Red Sea, Arabian Gulf and Eastern Coast of Africa.
Ports along its routes include Adabiya and Sokhna in Egypt; Jeddah, Jubail and Dammam in the Kingdom of Saudi Arabia; Aqaba in Jordan; Port Sudan in Sudan; and Djibouti in Djibouti, Khalifa Port and Jebel Ali in the UAE.
TCI is a terminal operator and stevedoring company that specialises in project cargo handling, heavy lift, breakbulk, industrial breakbulk, general cargo and container handling, as well as warehousing and storage facilities.
It is the largest operator and sole container operator in Adabiya Port.
In August, AD Ports announced its financial results for the year’s second quarter, seeing a 59 per cent surge in net profits.
Net profit growth accelerated to 59 per cent year-over-year (YoY), reaching AED300 million ($82 million) in Q2 2022, resulting in a 49 per cent YoY growth for the first half of 2022.