Ikhlas Capital Singapore Pte. Ltd. (Ikhlas) announced on May 14 that it signed an agreement for an investment of up to $18 million in Glacier Megafridge Inc. (GMI).
Founded in 2005, GMI is one of the leading integrated cold chain logistics service providers in the Philippines, preferred by many local and international blue-chip companies, according to Ikhlas. GMI operates eight major facilities in Metro Manila and key provinces, with over an aggregate pallet capacity of more than 50,000. All facilities are built to international standards, earning industry certifications, such as Hazard Analysis Critical Control Point and ISO 22000 food management system. GMI is currently owned by William Y. Tieng and Arturo C. Yan.
Ikhlas, a private equity firm co-founded by former Finance Secretary Cesar Antonio V. Purisima, said its investment will fund GMI’s plans to scale-up capacity in providing end-to-end service and to extend geographic coverage nationwide.
“This investment is an important milestone as we embark on our expansion plans,” Yan was quoted in the statement as saying. “At GMI, we believe in mindful growth through strategic and synergistic partnerships. Together with the strong local and regional network of Ikhlas, we can enhance our value proposition, both in terms of location coverage and service quality. We will work non-stop towards becoming the top cold chain player in the country.”
Even with the strict lockdown period in the Philippines, from March 16 to May 16, 2020, GMI continues to operate as an essential business in food distribution. The domestic demand for cold chain logistics remains robust. Majority of GMI’s customers, who are engaged in food products and services, require the use of temperature-controlled storage and transportation in their stock management.
“We are excited to be a part of GMI’s growth story, as we believe that the Company has a strong competitive edge with its state-of-the-art facilities and highly experienced management team,” Ikhlas Chairman Dato’ Sri Nazir Razak was quoted in the statement as saying. “While the current Covid-19 crisis has inevitably resulted in some disruption to global supply chains, we are confident that GMI, as a quality service provider, is well-positioned to grow market share and will prove resilient in weathering this crisis.” Dennis Estopace