Italian multi‑utility Hera closed a €138 million deal to acquire Sostelia, a water‑treatment specialist, from private‑equity owner Xenon AIFM. The transaction, including debt, marks Xenon’s exit from the industrial water services sector. Sostelia’s 65 % stake was held through Xenon Fidec, the rest owned by entrepreneurs for European investors.

Hera says the purchase will strengthen its industrial and civil water‑treatment portfolio and is expected to add over €20 million to consolidated EBITDA once fully integrated, excluding synergies. The move fits a broader strategy to acquire regulated, infrastructure‑like businesses that deliver stable cash flows and long‑term growth in the next fiscal year and regulatory compliance.

For Xenon, the sale represents another realization from its Italian portfolio amid a wave of strategic buyers targeting environmental and infrastructure assets. As utilities increasingly pursue bolt‑on acquisitions, the deal underscores private‑equity interest in water services and signals a shift toward sustainability‑linked investments to meet evolving standards.