Business Wire
Summary
Antin Infrastructure Partners, through its Flagship Fund IV, has agreed to sell a majority stake in Vicinity Energy Inc., the largest owner and operator of district energy systems in the US, to Harrison Street Asset Management. The transaction values 100% of Vicinity at an enterprise value of $2.92 billion.
Headquartered in Boston, Massachusetts, Vicinity provides essential district heating and cooling solutions to over 1,000 buildings under long-term contracts with large and energy-intensive customers in the higher education, healthcare, government, data center and commercial sectors across 12 major US cities, including Boston & Cambridge, Philadelphia, and Baltimore. Vicinity has established the blueprint for decarbonizing cities with district energy through its proprietary eSteam™ offering.
The company has grown significantly under Antin’s ownership. Across its existing footprint, Vicinity has connected more than 160 new buildings to its networks and made substantial capital improvements to upgrade its plants and networks and ensure safe and reliable operations. Vicinity is a first mover among district energy operators in the US through offering carbon-free eSteam™ to customers generated by new electric boilers and industrial scale-heat pump technology using renewable energy sources.
Kevin Hagerty, President and CEO of Vicinity, stated: “We are grateful for the dedication of our employees, the trust of our customers and to Antin for its partnership throughout this chapter of our growth. Together, we have built a strong foundation for success. This new partnership with Harrison Street Asset Management creates an opportunity to amplify that momentum through continued investment, innovation, and growth, while remaining steadfast in our commitment to operating safely, serving our customers reliably, and supporting the communities that depend on us.”
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