GCP invests P7B in local cold storage chain

Updated on December 10, 2024 at 12:18 p.m.

Cold storage provider Mets Logistics Inc. will get P7 billion in additional funding from a Southeast Asian private equity firm to bankroll its expansion across the country as demand for its services grow.

Eduardo Tio-led Mets on Monday said Singapore-based Growtheum Capital Partners’ (GCP) investment would also support its vision of addressing the “shortage of reliable and high-quality cold storage services in the country.”

The investment closing is subject to regulatory approvals, according to Mets. PwC was tapped as its financial, tax and legal advisor for the transaction.

READ: More cold storage, Marcos assures farmers, fisherfolks

“[GCP’s] experience in supporting management teams across diverse sectors makes them a valuable collaborator for us,” said Tio, chair and president of Mets.

“This investment will further our expansion plans and help us enhance our cold chain logistics capabilities, providing greater value to our customers and stakeholders,” he added.

Founded in 2010, Mets currently has around 100,000 pallet positions, or designated spaces for pallets, in its portfolio.

Its branches are located in Cavite, Bulacan, Cebu and Cagayan de Oro.

For their part, GCP managing partner Amit Kunal said Mets’ core business “and solid market position align with our investment strategy.”

Earlier this year, President Marcos said the government was planning to put up more cold storage facilities to address the volatile prices of agricultural products.

Cold storage facilities are seen as vital solutions to postharvest losses in the event of overproduction.

The Cold Chain Association (CCAP) of the Philippines earlier projected the country’s total cold storage capacity to rise by 8 percent to 750,000 metric tons this year.

Citing industry data, CCAP noted that the industry has been growing by around 50,000 MT a year since 2021. —Meg J. Adonis