AD Ports buys top logistics group Noatum for $681m

AD Ports Group has announced that it has acquired Noatum, a global integrated logistics platform with a presence in 26 countries and LTM revenue and ebitda of AED6.91 billion and AED555 million, respectively.

The total purchase consideration (Enterprise Value) for 100% ownership amounts to AED2.5 billion ($681 million), implying an LTM EV/ebitda of 4.6x.

Noatum, whose origins date back to 1963, operates in three business areas – Logistics, Maritime, and Port Terminals – with market-leading positions in Spain and Turkey and a significant presence in the US, UK, China, and Southeast Asia.

Noatum’s global logistics business specialises in comprehensive freight management, project logistics, contract logistics, international supply chain management, customs, and e-solutions, with offices and a wide network of agents around the world.

In particular, Noatum has advanced capacities in heavy lift logistics, which AD Ports Group aims to bring to the region.

The company’s terminals operations include 15 Ro-Ro, dry bulk, general cargo and container terminals in Spain, supported by highly professional management, while its maritime division provides shipping agency services, including outsourcing and ancillary services, and cargo services, such as liquid bulk, breakbulk cargo, reefer and dry cargo.

Moving forward, Noatum will lead AD Ports Group’s Logistics Cluster, consolidating the company’s existing logistics offering into its operations.

This will be AD Ports Group’s third major international acquisition in 2022, following the acquisition of a 70% equity stake in Transmar and TCI in September, and the announcement in November of its acquisition of an 80% equity stake in Dubai-based Global Feeder Shipping (GFS).

The company, which employs more than 2,600 professionals, provides tailored multi-modal transport solutions, comprehensive logistics services, and advanced port operations across its key markets, and aligns well with AD Ports Group’s integrated business model.

In addition, the company has specialised automotive, project cargo, and port logistics divisions and offers comprehensive supply chain solutions in the oil & gas, renewable energies, food, industrial manufacturing, pharma and healthcare, and retail industries with customised solutions for clients.

Subject to regulatory approvals, the transaction is expected to close in H1 2023. As part of the transaction, Noatum’s management is locked in for a period of three years to ensure smooth integration.

Chairman Falah Mohammed Al Ahbabi said this ambitious acquisition brings a major global logistics platform into the AD Ports Group family, significantly enhancing its global connectivity and extending the range of maritime, logistics and ports solutions.

“This acquisition makes AD Ports Group one of the most significant global players in the finished vehicle logistics, which we intend to expand in our home and core markets,” he stated.

Managing Director and Group CEO Captain Mohamed Juma Al Shamisi said: “Bringing Noatum into our integrated network of businesses will add scale and new layers of expertise, supporting both our global ambitions and our contribution to economic diversification within the UAE.’

“Noatum operates an asset-light model with a high cash conversion rate and will make an immediate contribution to our financials, at the same time as positioning us for international expansion. We will leverage the acquisition of Noatum to build a strong international logistics brand with deep roots in this region,” he added.

Rothschild & Co acted as the financial advisor and A&O as the legal advisor while Bain & Co completed the commercial due diligence and PwC the financial and tax due diligence for AD Ports Group in this transaction.-TradeArabia News Service