Tabreed to Acquire PAL Cooling from Multiply Group in Strategic Partnership
Deal News | Jun 30, 2025 | Zawya
CVC DIF, a strategic arm of the global private markets manager CVC, and Tabreed, the renowned district cooling company, have joined forces to acquire PAL Cooling Holding from Abu Dhabi’s Multiply Group. The transaction, valued at approximately AED 3.8 billion, is aligned with both firms’ strategies to penetrate further into Abu Dhabi’s robust real estate market underpinned by ambitious and sustainable urban development projects. With strategic long-term concessions in prime Abu Dhabi locations such as Al Reem Island, PAL Cooling is poised for significant growth with a projected increase in district cooling capacity to approximately 600,000 refrigeration tons. This acquisition marks a historic year for Tabreed, which continues to solidify its stature as a global leader in sustainable cooling solutions. For Multiply Group, this move strategically optimizes their portfolio, providing liquidity and returns to accelerate their growth across core and emerging sectors globally.
Sectors
- Infrastructure
- Energy & Utilities
- Real Estate
Geography
- United Arab Emirates – The main geographical focus of the article is Abu Dhabi in the United Arab Emirates, where the acquisition of PAL Cooling and its operations are based.
- Middle East – Both CVC DIF and Tabreed have operations and strategic interests across the Middle East, influencing the scope and significance of the acquisition.
Industry
- Infrastructure – The article discusses an acquisition within the district cooling segment, which is part of broader infrastructure developments focused on sustainable urban projects.
- Energy & Utilities – The acquisition involves district cooling systems, which are an essential part of energy and utility services provided to urban environments.
- Real Estate – The acquisition supports real estate developments, especially on Al Reem Island, forming a significant part of the urban expansion and sustainable development plans in Abu Dhabi.
Financials
- AED 3.8 billion – The equity value of the transaction for acquiring PAL Cooling from Multiply Group.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| PAL Cooling Holding | Target Company | Company | A prominent player in the UAE district cooling market, PAL Cooling caters to landmark developments with strategic concessions in Abu Dhabi. |
| Multiply Group | Selling Company | Company | The Abu Dhabi-based firm selling PAL Cooling as part of their portfolio optimization strategy. |
| CVC DIF | Bidding Company | Company | CVC Capital Partners’ infrastructure strategy focusing on sectors like energy transition, transport, and utilities. |
| Tabreed | Bidding Company | Company | A global leader in district cooling services, partnering with CVC DIF to acquire PAL Cooling. |
| Dr Bakheet Al Katheeri | Chairman of Tabreed | Person | Responsible for leading Tabreed, a major player in sustainable district cooling services. |
| Gijs Voskuyl | Managing Partner at CVC DIF | Person | Oversees CVC DIF's strategic investments in infrastructure projects. |
| Khalid Al Marzooqi | Chief Executive Officer of Tabreed | Person | The CEO leading Tabreed in its acquisition of PAL Cooling and other strategic initiatives. |
| zgr nder | Head of CVC Middle East | Person | Leader in CVC’s Middle East operations, highlighting the strategic partnership with Tabreed. |
| Samia Bouazza | Group CEO and Managing Director of Multiply Group | Person | Responsible for the decision to monetize PAL Cooling as part of Multiply Group’s strategy. |