Idan Ofer's Canon Invests $450 Million in US Urban Energy Firm Vicinity

Canon, the investment company controlled by Israeli businessman Idan Ofer, is making a significant strategic move by acquiring a 25% stake in the American infrastructure company Vicinity for $450 million. This marks Canon's first direct acquisition since its establishment. The deal, conducted in partnership with Harrison Street Fund which is acquiring 35% from France's Antin Fund, values Vicinity at approximately $2.92 billion, including existing debt of $1.4 billion.

Vicinity is a leading player in the U.S. urban energy sector, operating a 140-mile network of underground pipelines in 12 major cities, including Boston and Philadelphia. The company provides heating, cooling, and steam services to over 1,000 buildings and institutions, such as government facilities, hospitals, and office towers. Its business model is characterized by high stability due to long-term, 15-year contracts and secured revenues. In 2025, Vicinity reported revenues of $611 million and an operational cash flow (EBITDA) of $140 million.

For Canon, established in 2015 as a spin-off from Israel Corporation to consolidate its foreign holdings, this acquisition represents a substantial deployment of its considerable cash reserves, which stood at around $600 million prior to the deal. After divesting significant assets like the shipping company ZIM and distributing billions in dividends over the years, Canon will now gain a seat on Vicinity's board, securing key decision-making rights in its management.

Following the announcement of the deal, Vicinity's stock experienced a 6% decline.