Kenon to Buy 25% Stake in Vicinity District Energy for $450 Million

Kenon Holdings Ltd. (KEN) said on Wednesday it agreed to acquire a 25% interest in Vicinity District Energy, a U.S. district heating and cooling platform, for about $450 million in cash. The deal values Vicinity at an enterprise value of $2.92 billion and is expected to close in the second quarter of 2027. Kenon's maximum cash obligation is roughly $450 million, funded from cash on hand and available liquidity. Vicinity's current owner, an entity tied to Antin Infrastructure Partners, has agreed to sell a majority interest. Vicinity operates in 12 major U.S. cities, including Boston and Philadelphia, serving more than 700 customers across about 1,000 buildings. It generated approximately $611 million in revenue in 2025. Kenon shares closed Tuesday at $65.17 on the NYSE, up 1.67%.