Global private equity firm I Squared Capital has agreed to acquire a controlling stake in Philippine cold chain logistics company Royale Cold Storage (RCS), according to an announcement.
The deal, which is subject to regulatory approvals, including antitrust clearance, represents I Squared’s first cold chain investment in the Philippines and is part of a broader strategy to build an institutional cold storage platform in the country.
Financial details of the acquisition were not disclosed.
RCS, founded by Josephine Pangilinan, is a portfolio company of a Philippine-based PE firm, Navegar, which holds an estimated 30% stake in the company. The agreement between I Squared Capital and RCS comes about five months after Navegar was reported to be considering an exit from the company by selling a minority stake.
RCS offers mega-facilities, cold storage, warehouse management, blast freezing, and more through its five cold storage facilities strategically located across Metro Manila and nearby provinces.
The company supports clients in quick service restaurants, meat processing, agriculture, and food retail sectors, which are expected to benefit from the country’s rising demand for cold chain logistics.
“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.
RCS CEO Joey Tongson said the partnership will allow the company to expand its operations and enhance service offerings.
“Their global expertise in infrastructure and experience in cold storage will help us expand and enhance our capabilities and better serve the growing demand from the Philippines’ food and agriculture ecosystem,” Tongson said.
The investment extends I Squared’s global cold storage footprint, following previous deals involving CubeCold in Europe and WOW Logistics in the US.
I Squared Capital is in the market to raise $3 billion for a new fund that will support infrastructure development in certain Asia Pacific jurisdictions and select Latin American Nations.
The fund, ISQ Growth Markets Infrastructure Fund II, will focus on investment themes such as digital infrastructure, energy transition, transportation and logistics, environmental projects, and social infrastructure.
World Bank Group member International Finance Corporation is considering investing $75 million in the fund.
