AD Ports Group’s Noatum acquires Sesé Auto Logistics

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Noatum, a subsidiary of AD Ports Group, has fully acquired Spain’s Sesé Auto Logistics, a unit of Grupo Logístico Sesé, for EUR81m ($84.7m), as part of the logistics firm’s broader strategy to boost its position in the global automotive sector.

“The acquisition of Sesé Auto Logistics is part of Noatum’s strategy to offer a comprehensive and vertical solution for the automotive industry under the Noatum Automotive brand, covering the entire logistics value chain,” AD Ports said in a bourse filing.

The deal is expected to be completed by Q1 2024, subject to regulatory approvals. It implies an enterprise value to EBITDA ratio (EV/EBITDA) of around 3.5x based on the company’s last twelve months performance to August 2023 – revenue of around EUR100m.

The transaction is expected to generate significant synergies with Noatum’s port terminals business in Spain. Noatum expects a normalisation of the European automotive logistics market, which has been factored into the transaction business case.

The finished vehicle market in Europe is estimated at EUR3bn, with a projected annual growth of 6 per cent in the medium term, the Abu Dhabi-listed firm said in a statement.

“Noatum’s acquisition of Sesé Auto Logistics, which brings to us significant capabilities, expertise, and logistics networks, will help deliver on our vision as it will allow us to further expand within Europe’s growing and profitable automotive sector,” said Mohamed Juma Al Shamisi, managing director and Group CEO at AD Ports Group.

Al Shamisi said the deal paves the way for AD Ports to become a leading global provider in the finished vehicles logistics industry.

Sesé Auto Logistics, which provides road and rail transport logistics services across Europe using light and heavy vehicles, operates in five countries including Spain, Germany and Poland.

The company has a fleet of more than 200 trucks that cover more than 30 million kilometres annually across the continent.

AD Ports’ expanding portfolio

Meanwhile, Abu Dhabi’s AD Ports completed the acquisition of Noatum in July in a deal valued at $722m (Dhs2.65bn).

The landmark acquisition brought together two major industry players to form a global powerhouse in the trade and logistics industry, with Noatum assuming the leadership of AD Ports’ Logistics Cluster.

The Spanish logistics firm’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 together with dedicated depots and warehouses.

Sesé Auto Logistics deal follows a string of deals and agreements that ADQ-backed AD Ports has closed over the past six months as the logistics group is evolving into a more diversified and integrated logistics firm.

The group reported a 66 per cent year-on-year rise in first-quarter revenue, driven by volume growth in key sectors, business diversification as well as local, regional, and international expansion both organically and through mergers and acquisitions.

Read: AD Ports Group Q2 revenue surges by 66% to Dhs2.1bn