Singapore – – September 30, 2026 -- Kenon Holdings Ltd. has agreed to acquire a 25% equity interest in Vicinity District Energy for approximately $450 million, as part of a broader transaction valuing the company at $2.92 billion.
Antin Infrastructure Partners exits majority stake in $2.92 billion deal
The current owner, an entity related to Antin Infrastructure Partners, is selling a majority interest in Vicinity to a buyer jointly owned by Kenon and funds managed by Harrison Street Asset Management (HSAM). Under the Equity Purchase Agreement, the buyer will acquire between approximately 60% and 100% of Vicinity Holding Company. A consortium of lenders has committed non-recourse debt financing of up to $1.4 billion to fund part of the purchase price and future growth capital expenditures.
Vicinity holds monopoly district energy positions in 12 US cities
Vicinity is the sole district heating and cooling provider in 12 major U.S. cities, including Boston and Philadelphia, serving more than 700 customers across roughly 1,000 buildings and approximately 250 million square feet of space. The network runs through more than 140 miles of underground pipe infrastructure, with some systems operating for over 150 years. Revenue is largely secured through long-term contracts averaging roughly 15 years, featuring inflation-linked escalators and fuel cost pass-throughs.
Company posted $611 million in 2025 revenue, over $140 million run-rate EBITDA
Vicinity generated approximately $611 million in total revenue under U.S. GAAP in 2025. Based on unaudited management information, the company's expected annualized run-rate Adjusted EBITDA exceeds $140 million. Vicinity also markets eSteam, a decarbonized steam solution aimed at customers pursuing sustainability targets.
Kenon caps guarantee at $40.2 million, expects Q2 2027 close
Kenon's maximum cash obligation for the acquisition is approximately $450 million, funded from existing cash and liquidity, with no obligation to exceed a 25% indirect interest. Kenon's guarantee tied to a potential termination fee under the Equity Purchase Agreement is capped at $40.2 million. Completion is subject to customary closing conditions, including regulatory approvals, and is expected in the second quarter of 2027.
Deal marks Kenon's diversification beyond electricity generation
The transaction extends Kenon's portfolio beyond the electricity generation business of subsidiary OPC Energy Ltd. into district energy infrastructure. Kenon will hold significant board representation in the buyer entity and plans active involvement in the business's growth. HSAM, which manages more than $110 billion in assets as of June 30, 2026, separately holds a 33.33% stake in CPV Renewable Power LLC, an investment the companies describe as distinct from the Vicinity transaction.