Tabreed and CVC in Exclusive Talks to Acquire Multiply’s Cooling Business

National Central Cooling Company (Tabreed) and private equity firm CVC Capital Partners are in exclusive negotiations to jointly acquire Multiply Group’s district cooling unit, PAL Cooling Holding. The deal, estimated to be worth at least $1 billion, marks a significant move in the UAE’s cooling sector, reinforcing Tabreed’s expansion strategy and CVC’s investment interests in sustainable infrastructure.  

Key Highlights of the Acquisition Talks  
- Tabreed is working with Citi on the potential offer for Multiply’s PAL Cooling Holding, which operates several district cooling plants in Abu Dhabi.  
- Multiply Group, controlled by Abu Dhabi-based IHC, has been exploring a sale of its cooling division, previously working with Standard Chartered on the deal.  
- The acquisition would strengthen Tabreed’s portfolio, following its recent concession to provide district cooling to Dubai’s Palm Jebel Ali.  

Strategic Importance of District Cooling  
- District cooling systems deliver chilled water via insulated pipes to cool offices, industrial sites, and residential buildings, offering an energy-efficient alternative to traditional air conditioning.  
- PAL Cooling Holding has a combined design capacity of 242,000 refrigeration tonnes, benefiting from long-term agreements with developers such as Aldar and Reem Developers.  
- The UAE’s real estate boom, particularly in Abu Dhabi and Dubai, has increased demand for sustainable cooling solutions, making this acquisition strategically valuable.  

Market Impact and Future Prospects  
- If finalized, the deal would position Tabreed as a dominant player in the Gulf’s district cooling sector, expanding its footprint beyond existing projects.  
- CVC’s involvement signals growing private equity interest in infrastructure investments, particularly in sustainable energy solutions.  
- Analysts anticipate further consolidation in the cooling industry as companies seek to optimize operations and expand service offerings.  

Source: AGBI, Zawya.