AD Ports Group, a renowned operator of industrial cities and free zones in Abu Dhabi, has taken a significant step in its global expansion strategy by acquiring the integrated logistics platform Noatum based in Spain.
Having secured the necessary regulatory approvals from Spanish authorities, AD Ports Group has gained complete control over Noatum, which operates across 26 interna tional markets. This development was officially announced in a statement to the Abu Dhabi Securities Exchange,where AD Ports Group shares are traded.
Valuation and Financing of the Deal
The valuation of this strategic acquisition places the enter- prise value of Noatum at Dh2.5 billion ($681 million), a deal initially unveiled by AD Ports Group back in November. The financing for this acquisition will be facilitated through a newly obtained acquisition loan. Notably, the transaction’s valuation is represented by a multiple of 5.9 times the last twelve months’ enterprise value to earnings before interest, tax, depreciation, and amortisation (EBITDA).
Formation of a Trade and Logistics Powerhouse
This landmark acquisition is a transformative step, uniting two major players in the trade and logistics sector to establish a global powerhouse. Noatum’s extensive services, experience, and capabilities position it to lead AD Ports Group’s logistics cluster. The integration process, which will incorporate Noatum’s 2,800 employees into the cluster, is set to commence immediately.
Forward-Looking Vision
Mohamed Al Shamisi, the Managing Director and Group Chief Executive of AD Ports Group, expressed his anticipation for the collaboration, “We look forward to leveraging our integrated cross-cluster business model and working together to unlock unprecedented value for our respective customers, partners, and stakeholders. The future of trade and logistics relies on integration, resilience, and innovation, and by taking this transformative step together, we are charting a path to realising our collective mission of becoming one of the top global trade and logistics providers.”
Expanding International Ventures
This strategic acquisition aligns with AD Ports Group’s expansion strategy, as evidenced by their recent acquisitions and port management concession agreements across diverse markets. The company signed a 50-year concession agreement with Pakistan’s Karachi Port Trust.As part of the agreement, AD Ports Group will invest $220 million to develop a new concession at Karachi Port, accelerating its growth in the next decade.
Furthermore, AD Ports Group entered into a concession agreement with the government of the Republic of Congo last month to manage and operate a multipurpose terminal at the New East Mole port in Pointe-Noire. The company has also agreed with Egypt’s Red Sea Ports Authority to develop and operate a multipurpose terminal at PortSafaga. AD Ports Group is also set to work with Angolan organisations to develop and improve maritime connectivity along Africa’s west coast.
Expanding Strategic Partnerships
AD Ports Group partners with Kazakhstan’s state energy company, KazMunayGas, and the Ministry of Industry and Infrastructural Development in a significant collaboration. The aim is to cooperate in developing a national marine fleet and coastal infrastructure, focusing on the Caspian and Black Seas.
Maximising Growth and Innovation:
With the integration of Noatum into its portfolio, AD Ports Group is primed to significantly expand its service offerings, tapping into opportunities for revenue enhancement and cost-saving measures while embracing cutting-edge technology. Over the past year, Noatum’ impressive financial performance is highlighted by substantial revenue of Dh6.4 billion and an EBITDA of 448 million, alongside a net debt position of Dh220 million as of May 31.
Diverse Portfolio and Global Presence
Noatum’s widespread presence across key global markets- Europe, Asia, Africa, North America, and South America – contributes to its diverse portfolio, serving a broad spectrum of industries. These sectors include automotive and aerospace, chemicals, construction, renewable energy, industrial manufacturing, oil and gas, mining, healthcare,and retail. This acquisition further solidifies AD Ports Group’s position as a driving force in the dynamic and ever-evolving global trade and logistics arena.