Kenon Announces Agreement to Acquire 25% Interest in District Heating and Cooling Business in the United States for approximately $450 million
Kenon Holdings agreed to acquire a 25% equity interest in Vicinity District Energy, a leading U.S. district heating and cooling utility, for cash consideration of approximately $450 million. The deal values Vicinity at a total enterprise value of $2.92 billion for 100% of the company, with up to $1.4 billion of committed non-recourse debt financing alongside partner Harrison Street Asset Management. Vicinity serves 700+ customers across 12 cities including Boston and Philadelphia, with 2025 GAAP revenue of approximately $611 million and expected run-rate Adjusted EBITDA over $140 million (unaudited).
Key figures
- Deal Value Usd
- 450000000
- Expected closing
- Q2 2027
- Kenon guarantee cap
- $40.2 million
- Kenon ownership pct
- 25%
- Vicinity 2025 revenue
- approximately $611 million (U.S. GAAP)
- Enterprise value 100pct
- $2.92 billion
- Debt financing committed
- up to $1.4 billion (non-recourse to Kenon and HSAM)
- Vicinity run rate adjusted ebitda
- over $140 million (unaudited, non-GAAP)
AI analysis
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