Middle East Business: AD Ports acquires 80% stake in Global Feeder Shipping – Gulf Digital News

Middle East Business: AD Ports acquires 80% stake in Global Feeder Shipping – Gulf Digital News

AD Ports Group today (November 3) announced that it has signed an agreement to acquire an 80% equity stake in Dubai-based Global Feeder Shipping (GFS), a global container shipping company. 

The total purchase consideration for the 80% stake amounts to AED 2.9 billion ($800 million), implying a 100% Enterprise Value of AED 3.7 billion ($1.0 billion), with the acquisition being fully funded through a new acquisition loan.

This earnings and value-accretive strategic investment significantly broadens AD Ports Group’s global feeder shipping footprint and contributes to its long-term strategy to become one of the world’s premier short-sea and feeder shipping players, AD Ports Group said in a statement. 

GFS’ LTM financial performance was strong with revenue of $1,085 million, EBITDA of $521 million (EBITDA Margin of 48%) and Net Profit of $481 million.

The company has built one of the largest fleets of container ships globally, featuring 26 owned and operated vessels with a total capacity of 72,500 TEUs, covering the Middle East, Indian Subcontinent and Southeast Asia with services connecting the UAE to India, Pakistan, Sri Lanka, Egypt, Sudan, Djibouti, Yemen, Kingdom of Saudi Arabia, Bahrain, China, South Korea, and Vietnam, among others.

AD Ports Group will look