AD Ports acquires Spain’s logistics firm Noatum for $681m

WAM

State-owned AD Ports Group has fully acquired Noatum, a Spain-based integrated logistics company, for AED 2.5 billion ($680.62 million), UAE’s news agency WAM reported.

The acquisition will be fully funded through a new acquisition loan.

The UAE-based operator of industrial cities and free zones plans to create a global logistics brand, merging its existing logistics business with Noatum.

Hence, Noatum will lead AD Ports Group’s logistics cluster, consolidating its 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.

In November, the firm announced the purchase of an 80 percent equity stake in Dubai-based Global Feeder Shipping.

Noatum operates in three business areas – logistics, maritime, and port terminals and has a presence in Spain, Turkey, the US, the UK, China, and Southeast Asia. Its terminals operations include 15 Ro-Ro, dry bulk, general cargo and container terminals in Spain.

At the same time, the maritime division provides shipping agency services, including outsourcing and ancillary and cargo services.

The transaction is expected to close in the first half of 2023, subject to regulatory approvals.

As part of the transaction, Noatum’s management will continue for three years to ensure smooth integration.

Captain Mohamed Juma Al Shamisi, managing director and group CEO, AD Ports Group, said that Noatum operates an asset-light model with a high cash conversion rate, which will immediately contribute to the company’s financials and help in international expansion.