Tabreed, the world’s leading district cooling company, and CVC DIF, the infrastructure strategy of leading global private markets manager, CVC, have partnered to acquire PAL Cooling Holding from Abu Dhabi’s Multiply Group.
The transaction, with an equity value of approximately $1 billion (AED 3.8 billion), includes three long-term concessions in the Abu Dhabi main island area and five long-term concessions on Al Reem Island, and remains subject to customary regulatory approvals.
The concessions are serviced by five existing, sustainable district cooling plants and associated networks in Abu Dhabi, with a connected capacity of 182,000 refrigeration tons (RT) as of December 2024. An additional plant is currently under construction and three more are in the planning phase. Together the nine plants and eight concessions are expected to represent approximately 600,000 RT.
PAL is strongly positioned on Al Reem Island, which is a strategic destination now fully part of the ADGM free zone, the vibrant financial center of Abu Dhabi, and is poised to benefit from the expected development ramp-up, with future network expansion already licensed by Abu Dhabi’s Department of Energy.
The deal was signed during a special ceremony at Multiply’s Abu Dhabi headquarters by Samia Bouazza, Group CEO and Managing Director of Multiply Group, Khalid Al Marzooqi, Chief Executive Officer of Tabreed and Özgür Önder, Head of CVC Middle East, in the presence of Tabreed’s Chairman, Dr Bakheet Al Katheeri.
Khalid Al Marzooqi CEO- Tabreed
“This is turning out to be a truly pivotal year for Tabreed. As we enter a new phase of growth in Abu Dhabi alongside partners, CVC DIF, the benefits brought by this acquisition will be substantial. As part of Tabreed’s portfolio, these additional plants will be operated and maintained by the world’s leading experts in sustainable cooling. The acquisition also serves to strengthen our already investment-grade status with safe, long-term concession agreements and assure future growth, evidenced by current and planned developments on Reem Island.”
Özgür Önder, Head of CVC Middle East,said that, “Our partnership with Tabreed, a regional leader with deep industry expertise, aligns perfectly with CVC’s commitment to investing in the UAE, backing mission-critical businesses that support sustainable development across the country.”
Samia Bouazza, Group CEO and Managing Director of Multiply Group, stated that, “The monetization of PAL Cooling Holding is a deliberate step in our portfolio optimization strategy, aimed at delivering superior returns to our shareholders. It reflects our ability to realize significant value from our assets while enhancing liquidity to fuel Multiply Group’s next phase of growth, both across our core verticals and on the global stage.”
