Tabreed and CVC to Acquire Abu Dhabi's PAL Cooling
Deal News | Jun 30, 2025 | CVC Capital Partners
CVC DIF, the infrastructure arm of CVC Capital Partners, and Tabreed, a global leader in district cooling solutions, have formed a strategic alliance to acquire PAL Cooling Holding from Abu Dhabi's Multiply Group. The proposed acquisition, valued at approximately AED 3.8 billion, encompasses a significant portfolio with eight long-term concessions serviced by five operational district cooling plants in Abu Dhabi. PAL Cooling, founded in 2006, serves prominent residential and commercial developments, notably on Al Reem Island, a crucial area within the Abu Dhabi Global Market free zone. The acquisition is positioned to harness substantial growth in the district cooling market, anticipating an operational connected load of about 600,000 refrigeration tons upon completion of additional planned plants. The deal is contingent upon regulatory approvals.
Sectors
- District Cooling
- Private Equity
Geography
- United Arab Emirates – The acquisition takes place in Abu Dhabi, which is the capital city of the UAE, and the transaction involves local companies and assets.
Industry
- District Cooling – The article focuses on the acquisition in the district cooling sector, a specialized industry catering to the cooling needs of large-scale developments.
- Private Equity – CVC Capital Partners, a prominent private equity firm, is involved in the transaction through its infrastructure strategy, CVC DIF.
Financials
- AED 3.8 billion – The equity value of the acquisition deal for PAL Cooling.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| CVC Capital Partners | Bidding Company/Buyer | Company | A leading global private equity and investment advisory firm, part of the acquisition partnership for PAL Cooling. |
| Tabreed | Bidding Company/Buyer | Company | A global leader in district cooling, partnering with CVC DIF to acquire PAL Cooling. |
| PAL Cooling Holding | Target Company | Company | A prominent player in the UAE district cooling market with long-term concessions and partnerships in Abu Dhabi. |
| Multiply Group | Selling Company/Vendor | Company | The current owner of PAL Cooling Holding, selling the company to Tabreed and CVC DIF. |