Idan Ofer's Cannon Invests $450 Million in US Infrastructure Firm

Cannon, the holding company controlled by Idan Ofer, is investing $450 million for a 25% stake in Vesta, a U.S. infrastructure company that operates heating and cooling systems in 12 American cities. This significant investment follows one of Ofer's most successful exits: an initial $200 million investment in the shipping company ZIM, which ultimately yielded over $2.1 billion in stock sales and dividends for Cannon.

The deal values Vesta at $2.92 billion and is expected to close in the second quarter of 2027. Vesta provides central heating and cooling to hospitals, universities, offices, government institutions, and residential buildings, operating over 140 miles of underground piping. The company reported revenues of approximately $611 million in 2025, with adjusted EBITDA exceeding $140 million on an annualized basis. Its contracts are long-term, with an average weighted term of about 15 years, and some payments are inflation-linked.

The substantial returns from ZIM were generated over several years. Cannon initially received its stake as part of a corporate restructuring after "Company for Israel" injected $200 million into ZIM during its 2014 debt arrangement. Cannon later sold millions of ZIM shares in 2022 for around $463 million and received approximately $480 million in net dividends. Further sales in June and late 2024 brought in an additional $111 million and $178 million, respectively, totaling over $2.2 billion realized from ZIM.

This new investment marks a return to significant capital deployment for Cannon after a period of asset monetization and dividend distribution to shareholders. The $450 million investment is more than double the initial ZIM capital injection. Despite the company's growth prospects, Cannon's stock saw a nearly 6% decline on the day of the announcement, which analysts attributed to market expectations of a large dividend payout from accumulated cash reserves and concerns about the acquisition price.

Cannon will have significant board representation and decision-making rights in Vesta. The acquisition is being made alongside funds managed by Harrison Street, which manages over $110 billion. A consortium of lenders has committed up to $1.4 billion to finance part of the transaction and future investments.