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Abu Dhabi Ports Group announced on Friday that it has acquired Noatum, the global platform for integrated logistics services spread in 26 countries, which in the last twelve months achieved revenues of 6.91 billion dirhams and profits before interest, taxes, depreciation and amortization amounted to 555 million dirhams. The total value of the transaction of owning 100% of the company’s shares reached the institutional value of 2.5 billion dirhams, while the institutional value for the last twelve months in relation to earnings before interest, taxes, depreciation and amortization recorded a rate of 4.6 times. This strategic acquisition, with cumulative value, significantly expands the Group’s global presence and positions it among the world’s leading shipping and logistics companies, and the transaction will be fully financed through a new acquisition loan.
3 sectors
After this, the third notable international acquisition of the Abu Dhabi Ports Group this year, which came on the heels of the acquisition of 70% of the stakes in both Egyptians Transmar and TCI last September, followed by the acquisition this November of an 80% stake in Global Feeder Shipping Company. FS, which is headquartered in Dubai.
Founded in 1963, Noatum operates in three business sectors: Logistics, Marine and Marine Terminals, with a leading position in the markets of Spain and Turkey, and a significant presence in the United States, United Kingdom, China and Southeast Asia.
Comprehensive management
Twatom’s global logistics activities cover comprehensive freight management, project logistics, contract logistics, global supply chain management, customs, and electronic solutions, and it has offices and a wide network of agents around the world. The company’s most distinctive feature is its possession of advanced capabilities in the field of logistics services for heavy loads, which the Abu Dhabi Ports Group seeks to provide in the region. Tuatom’s marine terminal services include 15 ro-ro, dry bulk, general cargo, and container terminals in Spain, operating under highly qualified and professional management, while the company’s marine services unit provides shipping agency services, including outsourcing and support services. and cargo services such as general liquid and bulk cargo, and refrigerated and dry cargo services.
Geographical breadth
Despite the geographical breadth of its operations, 75% of Noatum’s revenue is in Euros and US Dollars. With more than 2,600 employees, the company provides customized multimodal transportation solutions, comprehensive logistics services, and advanced port operations across key markets in which it operates, which is consistent with Abu Dhabi Ports Group’s integrated business model. In addition, the company owns units for the automotive business, project cargo and port logistics, and provides comprehensive supply chain solutions in the oil and gas, renewable energy, food, manufacturing, pharmaceutical, healthcare, and retail sectors, as well as providing customized solutions to customers.
Harmonies
The synergies in revenue and costs in this acquisition include joint procurement, close relationships with leading shipping companies in order to attract them to the stations of the Abu Dhabi Ports Group, and the expansion of the shipping agency business by benefiting from the marine business of “Noatum”, integrating services and institutional activities, and the participation of Best practices and latest technology. The transaction is subject to necessary regulatory approvals and is expected to be completed in the first half of 2023. The current management team of Nuatum will remain in place for a period of three years to ensure the smooth integration of the company under the Abu Dhabi Ports Group umbrella.
Falah Mohammed Al Ahbabi, Chairman of Abu Dhabi Ports Group, confirmed that the group continues to expand its global presence in line with the directives of the wise leadership, through acquisitions and the conclusion of partnerships with leading institutions that add value to the group’s business. He said: “This ambitious acquisition leads to the inclusion of a global logistics platform in our portfolio, which contributes to improving the global connectivity network and expanding the range of marine, logistics and port operations we provide to customers, as part of the implementation of the group’s global growth strategy. This important step also contributes to making Abu Dhabi Ports Group one of the most important global leaders in the field of logistics services for ready-made vehicles, which it intends to expand in our local market and other major markets.”
For his part, Captain Mohamed Juma Al Shamsi, Managing Director and CEO of Abu Dhabi Ports Group, said: “The addition of Noatum to our integrated network is a turning point in our journey to expand our operations and enrich our expertise to achieve our global ambitions, and enhance our contribution to the economic diversification of the UAE. Twatum adopts a low-asset business model with a high cash conversion rate, which is reflected in its immediate contribution to our financial performance, while at the same time providing us with opportunities for global expansion. We will make sure to use this step to build a well-established global brand in the field of logistics, with a rich heritage and long experience in the region. Rotchak & Co. worked for the Abu Dhabi Ports Group in this transaction, as a financial advisor, and A & O as a legal advisor, while Bain & Co took care of the audit procedures in commercial activities, and PwC took care of the financial and tax audit procedures.”
