AD Ports Group has acquired Noatum, a global integrated logistics platform with a presence in 26 countries and LTM revenue and EBITDA of AED 6.91 billion (EUR 1.80 billion) and AED 555 million (EUR 145 million), respectively, according to the company's release.
The total purchase consideration (Enterprise Value) for 100% ownership amounts to AED 2.5 billion (EUR 660 million), implying an LTM EV/EBITDA of 4.6x. This value and earnings accretive acquisition, which significantly broadens AD Ports Group’s global footprint and positions it among the leading logistics and freight forwarding companies in the world, will be fully funded through a new acquisition loan.
Recognising Noatum’s high growth potential and capacity to scale, AD Ports Group intends to create a market-leading international logistics brand, merging its existing logistics business with Noatum to create a significant presence in the region and enhancing services across the company’s global footprint. 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 percent 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).
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.
Despite its geographical diversification, the majority (75%) of Noatum’s revenues are EUR and USD denominated.
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.
Some of the revenue and costs synergies of the acquisition include joint purchasing, stronger relationships with shipping lines to attract them to the group’s terminals, expansion of the agency business by leveraging Noatum’s Maritime business, integration of corporate services and functions, transfer of best practices, and best-in-class technology.
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.