AD Ports becomes major force in global feeder shipping

The group paid $800m for the majority stake, implying an enterprise value of $1bn, with the acquisition being fully funded through a new acquisition loan, it said.

Subject to regulatory approvals, the transaction is expected to close in the first quarter of 2023. GFS’s existing management will remain in place with the founders retaining a 20% stake in the company.

GFS has built one of the largest container feeder fleets globally, today ranking No.24 on the Alphaliner 100 list in its own right, with an average vessel capacity of 2,788 teu. Revenue in the last 12 months was $1.09bn, with net profits of $481m, for a profit margin of 44%.

Its fleet consists of 26 owned and operated vessels with a total capacity of 72,500 teu, covering the Middle East, Indian Subcontinent and Southeast Asia, and connecting the UAE to India, Pakistan, Sri Lanka, Egypt, Sudan, Djibouti, Yemen, Saudi Arabia, Bahrain, China, South Korea, Vietnam, and other countries.

Placing GFS alongside existing feeder subsidiaries Safeen Feeders and Transmar makes AD Ports Group the world’s largest independent feeder company by vessels owned, with an owned fleet of 35 vessels, and the third largest globally by volume, with a total container capacity of 100,000 teu, it claimed.

“Our acquisition of a majority stake in GFS, which is the largest external investment in our company’s history, will deliver a step-change in the range of services we can offer and significantly enhance our global connectivity,” said Falah Mohammed Al Ahbabi, chairman, AD Ports Group.

“Our ambition is to become one of the world’s leading shipping companies, offering the most comprehensive range of maritime services, and this investment moves us significantly closer to achieving that goal.”

“Our maritime cluster has delivered remarkable returns in 2022, reflecting the significant market appetite for shipping, offshore and subsea services, and integrating GFS into our operations will enable us to increase our customer base, broaden our global footprint and build upon significant momentum,” said Capt. Mohamed Al Shamisi, MD and Group CEO.

“This is a key moment for GFS, which sees our company become part of AD Ports Group to create the largest single provider of shipping services in the region,” Amir Maghami, Chairman, GFS, said.

“Our priority has always been to continuously improve our systems and processes to serve global trade, and under the ownership of AD Ports Group we will be able to deliver a new level of service and support for international customers.”

Citi acted as financial advisor and Allen & Overy as legal advisor, while Roland Berger completed the commercial due diligence, and KPMG the financial and tax due diligence, for AD Ports Group on the transaction.

Known in an earlier guise as Simatech Shipping, the company claimed a 30% share the market in Jebel Ali as early as 2016, operating a total of 54 ships with various partners.

Add Seatrade Maritime News to your Google News feed.