Xenon exits Sostelia as Hera pays '138m to expand water treatment platform ' Private Equity Insights
Hera said the deal, which includes debt, will strengthen its position in the treatment of industrial and civil water. Once fully integrated, Sostelia is expected to contribute more than '20m to Hera's consolidated EBITDA, excluding additional synergies. Sostelia is currently 65% owned by Xenon through its Xenon Fidec fund, with the remaining 35% held by entrepreneurs linked to the operating companies within the group. Rothschild acted as financial adviser to Xenon on the sale. The acquisition forms part of Hera's strategy to expand regulated and infrastructure-like businesses that offer stable cash flows and long-term growth potential, particularly in sustainability-linked services. For Xenon, the transaction represents another realisation from its Italian portfolio, as strategic buyers continue to target specialist environmental and infrastructure assets amid tightening regulation and rising investment requirements. The deal highlights ongoing private equity interest in water and...
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