Abu Dhabi, UAE—AD Ports Group has signed an agreement to acquire an 80 percent equity stake in Dubai-based Global Feeder Shipping (GFS) for AED2.9 billion ($800 million), a global container shipping company.
The deal implies 100 percent Enterprise Value of AED3.7 billion (US$1.0 billion), with the acquisition being fully funded through a new acquisition loan.
AD Ports Group will look to integrate GFS into its Maritime Cluster. Aligning GFS services with AD Ports Group companies SAFEEN Feeders and Transmar will make AD Ports Group the world’s largest independent feeder company by vessels owned, with an owned fleet of 35 vessels, and the third largest globally by volumes carried with a total container capacity of 100,000 TEUs.
GFS’ LTM financial performance was strong, with revenue of $1.08 billion, EBITDA of $521 million (EBITDA Margin of 48 percent), and Net Profit of $481 million.
AD Ports said the acquisition will boost its trade activities and connectivity to core markets and enhance its feedering business, providing significant economies of scale through an expanded route network and fleet. In addition, the acquisition will further strengthen the company’s hub and spoke model by linking core markets in the Gulf, Indian Subcontinent, Red Sea, and Turkey to its key port assets, including Khalifa Port.
GFS’ integration with SAFEEN Feeders’ services has the potential to generate significant operational synergies, the company said.
Subject to regulatory approvals, the transaction is expected to close in Q1 2023. GFS’s existing management will remain in place, with the founders retaining a 20 percent stake in the company.