AD Ports Group has signed an agreement to acquire a 70 percent equity stake in International Associated Cargo Carrier (IACC), which wholly owns two Egypt-based maritime companies, Transmar International Shipping Company and Transcargo International (TCI).
The total Enterprise Value of this transaction amounts to $140 million. The acquisition will be fully funded from AD Ports Group’s existing cash reserves, which stood at over $816.7 million as of 31st March, 2022. It is the first international acquisition realized by AD Ports Group.
Transmar is a regional container shipping company that operates across the Middle East, Red Sea, Arabian Gulf and Eastern Coast of Africa. In 2021, Transmar handled 109,000 TEUs.
TCI is a terminal operator and stevedoring company, mainly operating out of the 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 tons of bulk cargo.
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.
“This is 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. AD Ports Group continues to diversify and take bold steps to expand our global reach, in line with the vision and guidance of our wise leadership. We look forward to working with the two new Egypt-based operations and bringing them into the AD Ports Group family.”
Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, said that “AD Ports Group continues to build up our presence in Egypt as part of our wider strategy for global expansion. 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.”
“Egypt and the Red Sea coast are increasingly important parts of our global maritime offering, and we believe we are well-placed, thanks to the guidance and continuous support of our wise leadership, to boost trade and economic growth for customers and communities along these routes,” added Mr. Al Shamisi.