AD Ports Group will fund the Noatum deal through a new acquisition loan. Post-deal, the Abu Dhabi entity will bring Noatum into its 'Logistics Cluster'. Image Credit: Supplied

Dubai: The AD Ports Group has bought US-based logistics platform Noatum for a total purchase consideration of Dh2.5 billion.

“This value and earnings accretive acquisition, which significantly broadens AD Ports Group’s global footprint and positions it among the leading logistics and freight forwarding companies in the world,” the Abu Dhabi entity said in a statement.

The deal will be realised through a new acquisition loan. AD Ports Group will merge its existing logistics business with Noatum to 'create a significant presence in the region and enhancing services across the company’s global footprint'. Noatum will thus lead AD Ports Group’s Logistics Cluster, by consolidating the company’s existing logistics operations.

AD Ports Group has big plans with Noatum
"Recognising Noatum’s high growth potential and capacity to scale, AD Ports Group intends to create a market-leading international logistics brand," the UAE company said.

This will be through merging its existing logistics business with Noatum to create a significant presence in the region and 'enhancing services across the company’s global footprint'.

H1-2023 closing

The transaction is likely to close first-half 2023. As part of the transaction, Noatum’s management is locked in for a period of three years to 'ensure smooth integration'. "AD Ports Group continues to extend our global footprint through value-adding acquisitions and partnerships with market leaders," said Falah Mohammed Al Ahbabi, Chairman. "This acquisition makes AD Ports Group one of the most significant global players in the finished vehicle logistics, which we intend to expand in our home and core markets."

The majority - 75 per cent- of Noatum’s revenues are euro- and dollar denominated. With a presence in 26 countries, its LTM (Last 12 month) revenue and EBITDA were 1.80 billion euros and 145 million euros, respectively.

This is AD Ports Group’s third major international acquisition during the year, following a 70 per cent stake buy in Transmar and TCI in September, and in November taking 80 per cent stake in Dubai-based Global Feeder Shipping (GFS).

Wide global reach

Noatum has extensive capacities in heavy lift logistics, which AD Ports Group now aims to bring to the Middle East. The terminals' operations include 15 Ro-Ro, dry bulk, general cargo and container terminals in Spain, while its maritime division provides shipping agency services, including outsourcing and ancillary services, and cargo services, such as liquid bulk, breakbulk cargo, reefer and dry cargo.

“Bringing Noatum into our integrated network of businesses will add scale and new layers of expertise," said Capt. Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group. "Noatum operates an asset-light model with a high cash conversion rate and will make an immediate contribution to our financials, at the same time as positioning us for international expansion.

"We will leverage the acquisition of Noatum to build a strong international logistics brand with deep roots in this region.”