AD Ports to buy majority stake in Egyptian maritime companies

AD Ports to buy majority stake in Egyptian maritime companies

Abu Dhabi-based AD Ports Group has announced that it has reached an agreement to acquire a 70% equity stake in International Associated Cargo Carrier BV, which wholly owns two Egypt-based maritime companies, Transmar International Shipping Company and Transcargo International (TCI).

The total purchase consideration (Enterprise Value) of this transaction amounts to AED514 million ($140 million).

The first international acquisition realised by AD Ports Group will be fully funded from AD Ports Group's existing cash reserves, which stood at over AED3 billion as of March 31, 2022.

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 tonnes 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.

These synergistic and value-accretive acquisitions provide AD Ports Group with a