Abu Dhabi Ports Group acquires 70% stake in Transmar, Transcargo in Egypt

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

The total purchase price (enterprise value) of this transaction is AED514 million ($140 million).

The acquisition will be fully financed from AD Ports Group’s existing cash reserves, which stood at more than AED 3 billion ($816 million) as of March 31.

This is the first international acquisition made by AD Ports Group.

Transmar is a regional container shipping company that operates in the Middle East, the Red Sea, the Persian Gulf and the eastern coast of Africa. In 2021, Transmar handled 109,000 twenty-foot equivalent units (TEUs).

TCI is a terminal operator and stevedoring company, operating primarily out of the port of Adabiya, where it is the exclusive container operator. Its two segments are Container Services and Bulk Cargo. In 2021, TCI handled 92,000 TEUs and 1.2 million tonnes of bulk cargo.

Over the past 12 months, Transmar and TCI together reported revenue and earnings before interest, tax, depreciation and amortization (EBITDA) of AED325 million ($88.4 million) and AED108 million. AED ($29.3 million), respectively.

These synergistic and value-creating acquisitions provide AD Ports Group with a market-leading platform for new growth opportunities in Egypt, but also throughout the Red Sea and Gulf regions.

Falah Mohammed al-Ahbabi, Chairman of AD Ports Group, said: “This is the first overseas acquisition in the history of AD Ports Group and an important step in our ambitious international expansion.

It supports the group’s broader growth objectives for North Africa and the Gulf region and expands the service portfolio in these markets.

Captain Mohamed al-Shamisi, Managing Director and CEO of AD Ports Group, said AD Ports Group continues to strengthen the group’s presence in Egypt as part of its broader global expansion strategy.

The acquisition of Transmar and TCI, both of which have a strong regional presence and deep customer relationships, is another key step in increasing the port’s geographic footprint and bringing the benefits of its integrated portfolio of services to a greater number of clients.

“Egypt and the Red Sea coast are increasingly important parts of our global maritime offering, and we believe we are well placed, with the guidance and continued support of our able leadership, to boost trade. and economic growth for customers and communities along these routes.”

This agreement is the latest in a series of AD Ports Group in the Egyptian maritime industry, including agreements with the Egyptian multi-purpose terminals group for the joint development and operation of the Egyptian port of Ain Sokhna and an agreement with the General Authority of Red Sea Ports for the development, operation and management of cruise ship berths at the Port of Sharm El Sheikh.

About Gertrude H. Kerr

Check Also

Pamplin Media Group – How to furnish your dining room

Use these tips as a springboard to selecting the right pieces for your home’s interior …