Dubai: Abu Dhabi’s AD Ports Group will take a 70 per cent stake in International Associated Cargo Carrier for Dh514 million. Transmar owns two Egypt-based maritime companies - Transmar International Shipping Company and Transcargo International (TCI). It handled 109,000 TEUs in 2021.
The acquisition will be fully funded from AD Ports Group’s existing cash reserves, which stood at over Dh3 billion as of March 31. “This is the first overseas acquisition in AD Ports Group’s history and an important milestone in our ambitious international expansion plan. This acquisition will support our wider growth targets for North Africa and the Gulf region and broaden the portfolio of services we are able to offer in those markets,” said Falah Mohammed Al Ahbabi, Chairman of AD Ports Group.
TCI is a terminal operator and stevedoring company, mainly operating out of 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 (last 12-month) revenue and EBITDA of Dh325 million and Dh108 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 market-leading platform for further growth opportunities in Egypt, but also in the entire Red Sea and Gulf regions,” said AD Ports.
Founders remain
The El Ahwal family and their executive team will remain in the management of the companies. This deal is the latest in a series by AD Ports Group in the Egyptian maritime industry, including agreements with the Egyptian Group for Multipurpose Terminals for the joint development and operation of Egypt’s Ain Sokhna Port and an agreement with General Authority for Red Sea Ports for the development, operation, and management of cruise ship berths at Sharm El Sheikh Port.
“The acquisition of Transmar and TCI - which both have strong regional presences and deep client relationships - is another key step in increasing our geographical footprint and bringing the benefits of our integrated portfolio of services to more customers,” said Mohamed Al Shamisi, Managing Director and Group CEO, AD Ports Group. “Egypt and the Red Sea coast are increasingly important parts of our global maritime offering, and we believe we are well-placed.”
