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 US 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 yielded over $2.1 billion in stock sales and dividends.
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 period of about 15 years, and some payments are inflation-linked.
The substantial returns from ZIM were generated over several years. Cannon received over $2.2 billion from ZIM stock sales and dividends. This includes selling 6 million ZIM shares for about $463 million in 2022, when the company was at its peak, and further sales in June and late 2024 totaling approximately $111 million and $178 million respectively. Additionally, Cannon received around $480 million in net dividends.
This new investment marks a return to significant new ventures for Ofer after a period where Cannon primarily divested assets and distributed cash to shareholders. The $450 million investment is more than double the initial capital injected into ZIM in 2014. Cannon will have significant board representation and decision-making rights in Vesta, alongside funds managed by Harrison Street.
