Controlling stake of Philippine Royale Cold Storage acquired by I Squared Capital
The US independent global infrastructure investment manager I Squared Capital said on Tuesday that it has reached an agreement to buy a majority share in Royale Cold Storage (RCS), a cold storage company in the Philippines.
According to a statement from I Squared Capital, this investment is the first phase of the company’s plan to establish one of the Philippines’ premier institutional cold storage platforms.
Notably, RCS runs five well-positioned cold storage facilities that support a blue-chip clientele in quick service restaurants (QSRs), meat processors, agriculture, and food retail. These facilities act as vital distribution centers for Metro Manila and the neighboring provinces.
“RCS is not only a premier operator, but also a trusted cold storage partner to many of the Philippines’ leading food companies,
“Its strong national presence, long-standing customer relationships, and scalable infrastructure make it an ideal platform to build a leading cold chain network across the country,” said Harsh Agrawal, Senior Partner at I Squared.
Meanwhile, I Squared Capital’s global infrastructure experience and cold storage know-how will help RCS grow and improve our capabilities and better meet the increasing demand from the Philippines’ food and agriculture ecosystem, according to Joey Tongson, Chief Executive Officer of RCS.
“We look forward to our partnership with I Squared Capital as we enter our next phase of growth,” he added.
Population growth, fast urbanization, and changing consumer preferences are some of the powerful macro tailwinds that the Philippines’ cold storage industry benefits from, according to the statement.
Food security through dependable cold chain infrastructure is becoming more and more necessary as a result of these trends.
When combined, these elements are anticipated to propel double-digit yearly expansion in the industry during the ensuing ten years.
Building on its expertise from CubeCold in Europe and WOW Logistics in the United States, this investment represents the ongoing development of I Squared Capital’s global cold storage strategy.
According to the statement, the closing is contingent upon a number of customary requirements, such as antitrust clearance in the Philippines.
With 100,000 pallet positions spread across its network of cutting-edge facilities, RCS provides a comprehensive range of temperature-controlled services, such as blast-freezing, cold storage, and warehouse management.
I Squared Capital is an international infrastructure investor that oversees assets worth $45 billion.
Over 90 businesses from 70 countries, including those in the energy, utilities, digital infrastructure, transportation, environmental, and social infrastructure sectors, make up the firm’s portfolio.
With offices in Abu Dhabi, London, Munich, New Delhi, São Paulo, Singapore, Sydney, and Taipei, the organization has more than 300 professionals working for it, with its headquarters located in Miami.
