The Hera Group further strengthens its leadership in the environmental sector, particularly in the treatment of civil and industrial water, thanks to the binding agreement signed for the purchase of 100% of STA and the related shares in the subsidiaries of the Sostelia Group (NTW, CID, NPC, Trentino Acque, COMS, Acque della Concordia, Arcobaleno GC), a major private Italian player in the technologies and treatment of industrial and civil water, 65% controlled by Xenon Fidec, a private equity impact fund managed by Xenon AIFM, and owned for the remaining 35% by entrepreneurs representing the companies belonging to the group.
The transaction has an estimated value of 138 million eurosThe acquisition by the Emilia-based multi-utility is subject to certain customary conditions precedent (including notifications and approvals from the competent authorities) and is expected to be completed by the end of March 2026. Once fully operational, this transaction will contribute an estimated increase in the Hera Group's consolidated gross operating margin of more than €20 million, in addition to the value of the expected integration synergies.
The strategic lines of the operation
The operation creates a reference player in Italy with an integrated offering in the water treatment market – from design and construction (EPC) to operation and maintenance (O&M), up to the treatment and disposal of liquid waste and sludge related to purification processes – and generates a system of synergies with Herambiente (Hera's subsidiary and Italy's leading operator in the environmental sector), which at least in theory will increase the quality, efficiency, and continuity of service for public and private customers.
"Synergies, in fact, represent one of the main drivers of value creation," explains a Hera statement. On the one hand, the company claims, 'integration of Sostelia services will allow Herambiente to expand its offering commercial, providing its customers with additional services such as revamping and design solutions for new systems or the management and maintenance of existing private systems, ensuring technical and operational continuity that translates into greater reliability and lower operating costs. Furthermore, Sostelia's customer portfolio represents a significant opportunity for Herambiente to expand its service offering.
The know-how gained by Sostelia and the Hera Group in the integrated water cycle is combined
Among the key elements of the industrial synergy created by the acquisition is the expertise gained by Sostelia and the Hera Group in the integrated water cycle, both civil and industrial. The Hera Group already boasts many years of experience, having directly managed dozens of its own plants for civil purification in the areas served and for the treatment of industrial waste liquids. For its part, Sostelia also provides integrated services and cutting-edge technologies for the treatment of industrial wastewater and sludge, for the recovery of water resources, and for addressing the new challenges associated with the recent EU Directive 2024/3019, which introduces more stringent obligations on the treatment of urban wastewater. An example of this are the solutions for the abatement of PFAS, aimed at reducing the environmental impact of these pollutants.
More generally, Sostelia's combination of technical expertise, plant management, and commercial capabilities will enable the Hera Group to expand its customer base, diversify revenues, and increase business resilience in a sector that requires rapid response, quality service, and continuous innovation.
The Sostelia Group in numbers
The Sostelia Group manages over 1.200 plants, more than 1.200 active customers, and employs approximately 350 people. Its financial position confirms the company's industrial strength. Approximately 70% of the business is focused on industrial customers; In terms of business lines, approximately half of revenues come from water treatment solutions, the main gateway to the customer that guarantees management and maintenance contracts over time, while the remainder comes from ancillary services.
Commercial diversification is broad, with a portfolio that combines major industrial players in the private market and significant public contracts in the municipal segment. Geographically, it has strong coverage of Northern Italy and an established international presence that generates approximately 10% of its revenue. The company also has a direct presence in waste treatment, thanks to an advanced liquid waste treatment plant in Casalmaggiore (CR), which complements Herambiente's existing plant portfolio.
"The acquisition of an industrial company like Sostelia, a leader in water treatment with advanced technologies, research and development, and high-level expertise, strengthens the Hera Group's positioning in the two strategic sectors of water and waste. The current scenario is marked by more stringent regulations, such as EU Directive 2024/3019 on wastewater, and by an ever-increasing water deficit, as water demand is expected to grow due to industrial reconfiguration, while available resources are expected to decline due to climate change. This context will drive investments in water treatment, conservation, and reuse, fostering increased demand for advanced civil and industrial water treatment solutions. We are thus adding another key component to our waste supply chain and continuing the path we have embarked on in recent years, which has already seen the entry of players such as Aliplast and ACR Reggiani into our company, with the aim of expanding and diversifying services for civil and industrial customers," he stated. Orazio Iacono, CEO of the Hera Group.
