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Home > Finance > Italy's Hera to buy Sostelia from Xenon to boost water treatment operations

Italy's Hera to buy Sostelia from Xenon to boost water treatment operations

Published by Global Banking and Finance Review

Posted on January 19, 2026

1 min read

Last updated: January 19, 2026

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Tags:sustainability acquisition investment

Quick Summary

Hera acquires Sostelia for €138 million, enhancing its water treatment operations and boosting earnings by €20 million.

Hera Acquires Sostelia for €138 Million to Enhance Water Operations

Hera's Strategic Acquisition of Sostelia

MILAN, Jan 19 (Reuters) - Italian multi‑utility firm Hera said on Monday it had agreed to acquire water treatment group Sostelia in a deal worth 138 million euros $161 million) including debt, boosting its position in the treatment of industrial and civil water.

Financial Impact of the Acquisition

Hera said the acquisition would, once fully integrated, contribute more than 20 million euros to group consolidated earnings before interest, tax, depreciation and amortisation, excluding additional synergies.

Ownership Structure of Sostelia

Sostelia is 65% owned by private equity firm Xenon AIFM through its Xenon Fidec fund, while the remaining 35% is in the hands of entrepreneurs linked to the various companies which are part of the group.

Advisory Role of Rothschild

Rothschild advised Xenon in the transaction. ($1 = 0.8595 euros)

(Reporting by Valentina ZaEditing by Keith Weir)

Key Takeaways

•Hera acquires Sostelia for €138 million.
•The deal includes Sostelia's debt.
•Acquisition to add €20 million to Hera's earnings.
•Sostelia is 65% owned by Xenon AIFM.
•Rothschild advised Xenon in the transaction.

Frequently Asked Questions about Italy's Hera to buy Sostelia from Xenon to boost water treatment operations

1What is an acquisition?

An acquisition is a corporate action in which one company purchases most or all of another company's shares to gain control of that company.

2What is EBITDA?

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure used to analyze a company's operating performance.

3What is private equity?

Private equity refers to investment funds that buy and restructure companies that are not publicly traded, often aiming to improve their financial performance.

4What are synergies?

Synergies refer to the potential financial benefit that is realized when two companies combine, often resulting in reduced costs or increased revenues.

Hera's Strategic Acquisition of Sostelia

Financial Impact of the Acquisition

Ownership Structure of Sostelia

Advisory Role of Rothschild

Rothschild advised Xenon in the transaction. ($1 = 0.8595 euros)

(Reporting by Valentina ZaEditing by Keith Weir)

Frequently Asked Questions

1What is an acquisition?

An acquisition is a corporate action in which one company purchases most or all of another company's shares to gain control of that company.

2What is EBITDA?

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure used to analyze a company's operating performance.

3What is private equity?

Private equity refers to investment funds that buy and restructure companies that are not publicly traded, often aiming to improve their financial performance.

4What are synergies?

Synergies refer to the potential financial benefit that is realized when two companies combine, often resulting in reduced costs or increased revenues.