Kenon Holdings has agreed to acquire a 25% equity interest in Vicinity District Energy for approximately $450 million as part of a transaction in which a buyer owned by Kenon and funds managed by Harrison Street Asset Management will acquire a majority interest in the U.S. district-energy platform. The transaction values 100% of Vicinity at an enterprise value of $2.92 billion. Vicinity provides steam, hot water and chilled water in 12 major U.S. cities, including Boston and Philadelphia, serving more than 700 customers across approximately 1,000 buildings and about 250 million square feet through more than 140 miles of underground pipes. The company generated approximately $611 million in U.S. GAAP revenue in 2025, while unaudited management information indicates expected annualized run-rate Adjusted EBITDA of more than $140 million. Financing includes up to $1.4 billion of non-recourse debt for part of the purchase price and future growth capital expenditures. The transaction remains subject to customary closing conditions, including regulatory approvals, and is expected to close in Q2 2027.