AD Ports Group announced it has reached an agreement to acquire a 70 percent stake in International Associated Cargo Carrier BV, a company that owns two Egypt-based shipping companies: Transmar International Shipping Company and Transcargo International SAE (TCI). The total purchase consideration (Enterprise Value) of this transaction is AED514 million ($140 million). AD Ports Group will fully fund the acquisition from its existing cash reserves, which stood at over AED3 billion as of March 31, 2022. The acquisition will be AD Ports’ first international acquisition.
Container shipping company Transmar operates across the Middle East, Red Sea, Arabian Gulf, and Eastern Coast of Africa. Transmar handled 109,000 TEUs in 2021. This company, which is the exclusive container operator at Adabiya Port, is a terminal operator and a stevedoring company. Bulk cargo and containers make up the company’s main business lines. The company handled 92,000 TEUs and 1.2 million tonnes of bulk cargo in 2021.
Transmar and TCI jointly generated LTM revenues of AED325 million and EBITDA of AED108 million. Management expects triple-digit growth for full-year 2022 driven by both volume and rate increases. AD Ports Group now has a compelling platform for growth in Egypt, but also throughout the Red Sea and Gulf region thanks to these synergistic and value-adding acquisitions. The management of the companies will remain in the hands of the El Ahwal family.