Kenon agrees to buy 25% stake in Vicinity District Energy for about $450 million
KEN•Kenon agreed to pay $450 million for a 25% equity stake in U.S. district heating and cooling operator Vicinity District Energy, implying a $2.92 billion enterprise value for the company, subject to post-closing adjustments.
1. Deal terms
The transaction will be made through a buyer vehicle owned by Kenon and funds managed by Harrison Street Asset Management. Non-recourse debt commitments of up to $1.4 billion have been arranged to fund part of the purchase price, alongside an additional growth capital expenditure facility.
2. Expected closing
Closing is targeted for the second quarter of 2027, subject to regulatory approvals. Kenon plans to fund its cash commitment from existing liquidity.
