AD Ports Group, a premier facilitator of logistics, industry and trade, has completed the acquisition of Noatum, a global integrated logistics services provider with presence in 26 countries, for AED2.65 billion ($720 million).
Aside from significantly expanding AD Ports Group’s global reach and scope of services, the acquisition of Noatum will generate several important synergies, including revenue enhancement, cost savings, joined purchasing, transfer of best practices, market expertise and adoption of cutting-edge technology.
AD Ports Group received the final approval from Spanish Authorities, after it attained regulatory clearance from the European Commission earlier in the year. The total purchase consideration (enterprise value) for 100% ownership of Noatum was calculated at EUR:AED rate of 4.01 on the day of the signing (EUR660 million, $720 million), implying a last 12 months EV/EBITDA of 5.9x.
Noatum revenue, EBITDA at AED6.4bn
The Spain-headquartered company generated revenue and EBITDA of AED6.4 billion (EUR1.6 billion) and AED448 million (EUR111.6 million) in the last twelve months, respectively, performing in line with expectations since the transaction has been announced, and held a net debt position of AED220 million (EUR54.9 million), as of May 31, 2023.
Full consolidation of Noatum has started since the day of signing on June 30, 2023.
The milestone and transformative acquisition bring together two major industry players, each with its strengths and capabilities, to form a global powerhouse in the trade and logistics space.
Given its significant scope of services, experience, and capabilities, Noatum will assume leadership of AD Ports Group's Logistics Cluster, with the process of integrating its businesses and team of 2,800 professionals into the Cluster’s operations commencing immediately.
Long-term growth strategy
Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, said: “This landmark acquisition is a testament to our wise leadership’s enduring support and aligns seamlessly with our long-term growth strategy. 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.”
Noatum brings significant growth potential and scalability thanks to its asset light operating model and presence in all major global markets, including Europe, Asia, Africa, North America and South America. Combining its maritime, ports and logistics businesses, the company operates a comprehensive portfolio of trade and logistics services, with presence in 26 countries, alongside a comprehensive network of its 143 international offices.
Maritime business
In particular, Noatum’s maritime business offers shipping agency services, inclusive of outsourcing, ancillary, and cargo solutions such as liquid bulk, breakbulk cargo, reefer, and dry cargo, while its ports business includes bulk, container, reefer, ro-ro and multi-purpose terminal operations located across 16 ports in Spain and the UAE, alongside dedicated depots and warehouses. Its logistics arm provides complete end-to-end services inclusive of multi-modal freight management, contract logistics, customs clearance and trade compliance, global supply-chain management, project cargo, and e-solutions.
The portfolio supports a spectrum of industry sectors including automotive and aerospace, chemicals, construction, renewable energy, FMCG, industrial manufacturing, oil and gas, mining, healthcare and life sciences, and retail.
Antonio Campoy, Chief Executive Officer, Noatum, said: “Throughout our 60-year history as a company, our goals have always been to build strong long-term projects, create new opportunities for the future, and grow alongside our clients, our people, and our stakeholders. Today, as part of AD Ports Group, these objectives are more meaningful than ever, as together we are going to build one of the most robust logistics companies in the world."
AD Ports Group’s intent to acquire Noatum was initially announced in November of 2022, and has been pending the necessary regulatory approvals.-- TradeArabia News Service
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