AD Ports Group Acquires Majority Stakes in Egypt’s Transmar and TCI
AD Ports Group has completed the acquisition of a 70% equity stake in Transmar International Shipping Company (Transmar) and Transcargo International S.A.E. (TCI).
The total purchase consideration (Enterprise Value) for 70% shareholding amounts to $140 million. It is the first international acquisition realised by AD Ports Group.
The value-accretive acquisitions provide AD Ports Group with a market-leading platform for further growth in container, cargo and port operations in Egypt, North Africa and Gulf regions, and along the entire Red Sea.
AD Ports Group has expanded its global footprint significantly over the past year, announcing a series of new investments and partnerships in markets on key trade routes for the UAE including Jordan, Uzbekistan, Tanzania and Egypt.
Transmar is a regional container shipping company that operates across the Middle East, Red Sea, Arabian Gulf and Eastern Coast of Africa.
Ports along its routes include Adabiya and Sokhna in Egypt; Jeddah, Jubail and Dammam in the Kingdom of Saudi Arabia; Aqaba in Jordan; Port Sudan in Sudan; and Djibouti in Djibouti, Khalifa Port and Jebel Ali in the UAE.
It has special capabilities for handling petrochemical products, which make up a significant proportion of trade along these routes.
TCI is a terminal operator and stevedoring company that specialises in project cargo handling, heavy lift, breakbulk, industrial breakbulk, general cargo and container handling, as well as warehousing and storage facilities.
It owns and operates a fleet of modern stevedoring equipment and has a strong focus on terminal operations in Adabiya Port, which is one of the main ports serving the Egyptian Red Sea region.
TCI is the largest operator and sole container operator in Adabiya Port, holding a significant market share of handling and stevedoring services.
Together, Transmar and TCI are on track to deliver revenue and EBITDA of around $137 million and $65 million, respectively, for full-year 2022.
The El Ahwal family and the executive team will remain in management of the companies and deliver the strategic growth plans under the guidance and support of the Board and in conjunction with AD Ports Group.
Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, said: “The successful completion of this international acquisition is another important step in our journey of global growth and market expansion in line with the vision of our wise leadership.
"AD Ports Group prides itself on its proven ability to invest in value-adding partnerships and acquisitions that enhance our portfolio of services and provide new trade connections for our global customers.”
“This acquisition provides us with a controlling position in two regional market leaders and enhances our presence along key trade lanes.
"We see significant opportunity for leveraging the expertise and experience of Transmar and TCI to enhance our commercial offering across the Gulf region and North Africa.”
KPMG LG acted as the financial advisor, PwC as the commercial advisor and Matouk Bassiouny and Hennawy as the legal advisor to AD Ports Group in these transactions.
EFG-Hermes acted as the exclusive financial advisor and White & Case acted as the legal advisor to Transmar and TCI on this acquisition.