Kenon Holdings to Acquire 25% Stake in Vicinity Energy for $450 Million

The acquisition is being executed through a partnership between Kenon and funds managed by Harrison Street Asset Management. The consortium has secured up to $1.4 billion in non-recourse debt financing to cover a portion of the purchase price and support future capital expenditures for the utility platform. The transaction values Vicinity’s total enterprise at $2.92 billion, pending final closing adjustments.

Vicinity operates as a pure-play infrastructure provider across 12 major U.S. cities, including Boston and Philadelphia, managing over 140 miles of underground piping. The company serves more than 700 institutional and commercial customers, with business anchored by long-term contracts and inflation-linked pricing. For Kenon, the investment shifts focus toward stable, long-term utility assets distinct from its existing electricity generation portfolio. The company intends to leverage its board representation to actively influence Vicinity’s ongoing network expansion and decarbonization initiatives, such as its eSteam technology.