AD Ports Group will acquire a 70 percent equity stake in International Associated Cargo Carrier B.V., which wholly owns two Egypt-based maritime companies, Transmar International Shipping Company and Transcargo International S.A.E. (TCI), for AED514 million ($140 million).
The acquisition will be fully funded from AD Ports Group’s existing cash reserves, which stood at over AED3 billion as of 31st March, 2022. It is the first international acquisition by AD Ports Group.
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 tons 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.
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 wider growth targets for North Africa and the Gulf region and broaden the portfolio of services we are able to offer in those markets.”
Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, said, “AD Ports Group continues to build up our 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.