Tabreed Acquires PAL Cooling for AED 3.8 Billion to Boost Capacity
Deal News | Jun 30, 2025 | Zawya
Dubai-listed Tabreed is set to significantly enhance its cooling capacity with the strategic acquisition of Abu Dhabi's PAL Cooling Holding. The AED 3.8 billion deal involves a partnership with CVC DIF acquiring 100% of PAL from Multiply Group. Established in 2006, PAL Cooling operates multiple sustainable district cooling plants in Abu Dhabi. These include agreements with developers like Aldar Properties and Modon, ensuring coverage across nine plants capable of providing 600,000 refrigeration tonnes by 2024. Positioned advantageously on Al Reem Island, PAL Cooling will capitalize on the development activities in the ADGM free zone. Tabreed’s CEO, Khalid Al Marzooqi, emphasized the acquisition’s alignment with their long-term growth plans. Expected to close in the second half of 2025, this acquisition is pending regulatory approval.
Sectors
- Energy & Utilities
- Real Estate & Construction
Geography
- United Arab Emirates – The deal is concentrated in the UAE, specifically involving Dubai-listed company Tabreed and concessions in Abu Dhabi.
- Abu Dhabi – PAL Cooling’s operations and strategic importance are primarily located in Abu Dhabi, tying the transaction closely to this region.
Industry
- Energy & Utilities – The acquisition involves district cooling, which is a vital segment within the energy and utilities sector, focused on sustainable and efficient energy solutions.
- Real Estate & Construction – The cooling capacity expansion supports urban development on Al Reem Island, interacting with master developers like Aldar Properties and Modon, thus linking it to the real estate sector.
Financials
- 3.8 billion AED – The purchase price of PAL Cooling by Tabreed and CVC DIF.
- 600,000 RT – The anticipated cooling capacity after all planned projects are completed.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Tabreed | Acquirer | Company | An Abu Dhabi-based company that provides district cooling services across the Middle East. |
| PAL Cooling Holding | Target Company | Company | A company specializing in district cooling systems, with significant operations in Abu Dhabi. |
| CVC DIF | Partner | Private Equity | CVC's infrastructure fund involved in the acquisition partnership. |
| Multiply Group | Vendor | Company | The selling entity of PAL Cooling Holding. |
| Khalid Al Marzooqi | CEO | Person | The CEO of Tabreed, indicating the strategic direction and future growth plans through the acquisition. |