Abu Dhabi Ports Group has agreed to purchase a 70% equity interest in International Associated Cargo Carrier (IACC) in a deal worth $140m (AED514m).

The company will finance the deal using its cash reserves, which were $816m (AED3bn) at the end of March.

IACC has a 200,000m² terminal near the King Abdul Aziz seaport and offers container-related services in the Kingdom of Saudi Arabia.

Its container services include maintenance and repair as well as cleaning and tarpaulin fixing.

The company also offers transportation, yard and warehouse services.

IACC is also the owner of two Egypt-based maritime firms, Transmar International Shipping and Transcargo International (TCI).

Collectively, Transmar and TCI generated revenues of $88.4m (AED325m) in the last 12 months. Their combined EBITDA during the same period was $29.3m (AED108m).

Abu Dhabi Ports Group chairman Falah Mohammed Al Ahbabi said: “This acquisition will support our wider growth targets for North Africa and the Gulf region and broaden the portfolio of services we can offer in those markets.”

Abu Dhabi Ports manages the deepwater Khalifa Port in the Abu Dhabi emirate, along with other ports and logistics parks. It also operates the Indian Ocean Fujairah port.

Last February, Saab entered into a memorandum of understanding (MoU) with Abu Dhabi Ports for the development of vessel traffic management as well as port surveillance solutions.