Egytrans securing pole position in Egypt’s growing project transport market
Egyptian logistics and transportation provider Egytrans has strengthened its position in the market while expanding its platform in a growing market through the acquisition of the National Transport and Overseas Services Company (NOSCO).
The acquisition has been approved by the company shareholders unanimously and will be completed through a share swap. Egytrans noted that following the transaction, existing Egytrans shareholders will own 70.17 per cent of the new company while NOSCO shareholders will hold 29.83 per cent of the new company to be named Egytrans NOSCO.
The capital of the combined company will reach $7.27 million, and the transaction is expected to close in the fourth quarter of the year. Gamal Moharam will continue as chairman of the combined company, while Abir Leheta takes on the role of CEO of Shared Services, and Mohamed Nadim assumes the position of CEO of Commercial & Operations.
Abir Leheta says, “The acquisition of NOSCO is a transformative opportunity for Egytrans,” adding that “NOSCO is a leading player in the project logistics and land transport sectors, and their expertise and capabilities will complement our own. Together, we will be able to offer our customers a wider range of services and solutions, and we will be well-positioned to capitalize on growth opportunities in the Egyptian market and beyond.”
She adds that “the acquisition of NOSCO is based strategically on several key factors, including a complementary joint customer footprint that minimises cross-cannibalisation, establishing leadership positions in well-diversified end markets to expand our customer base, increase penetration and spread risk while building leadership scale to gain a competitive edge.
The acquisition represents a turning point for Egytrans NOSCO, enabling the company to expand its presence in the projects and land transport markets, bolster warehousing and fleet capacities, and tap into a large joint customer base. The consolidation of resources and capabilities paves the way for accelerated growth and continued success in the dynamic
The transaction comes at a time of robust growth in Egypt’s logistics and transportation market, with a projected compound annual growth rate (CAGR) of 9 per cent from 2022 to 2027. The acquisition positions Egytrans NOSCO to leverage market drivers, capitalize on Egypt’s role as a major trading hub, and seize opportunities arising from regional infrastructure growth and the African Continental Free Trade Agreement.