Ireti Completes Acquisition: Gains Full Control Over Iren Acqua

Deal News | Feb 20, 2025 | Finance Community IT - 3 Private Equity

Ireti, wholly owned by Iren, finalized the acquisition of a 40% stake in Iren Acqua from F2i Sgr through its funds. The acquisition allows Ireti to own 100% of Iren Acqua, enhancing operational efficiency and financial benefits. Rothschild & Co served as the financial advisor for Ireti, with a team led by notable partners and associates. The acquisition aligns with Iren's strategic goal to grow in network management and improve profitability. The transaction includes an initial payment of €100 million upon closing, with a deferred payment of €182.5 million over 4.25 years, subject to a 4.5% annual compound interest rate. This strategic move is complemented by a hybrid bond, replacing third-party equity with equity instruments, reinforcing Iren's industrial vision and supporting inorganic growth in regulated businesses.

Sectors

Utilities
Private Equity
Financial Advisory Services

Geography

Italy – The companies involved, Ireti and Iren Acqua, as well as the transaction, are based in Italy.

Industry

Utilities – The transaction involves Iren Acqua, a company engaged in integrated water services, which positions it within the utilities sector.
Private Equity – F2i Sgr, engaged as a selling party, operates through private equity funds, indicating the involvement of this industry.
Financial Advisory Services – Rothschild & Co's significant role as a financial advisor in the transaction highlights the advisory services sector.

Financials

282.5 million euros – The total payment for acquiring the 40% stake in Iren Acqua, including an initial 100 million euros and deferred 182.5 million euros.
4.5% – Annual compound interest rate applied to the deferred payment over 4.25 years.
110-120 million euros – Estimated operating margin of Iren Acqua by end 2024.
180-200 million euros – Estimated net financial position of Iren Acqua.

Participants

Name	Role	Type	Description
Ireti	Buying Company	Company	Ireti, fully owned by Iren, is involved in integrated water service management.
F2i Sgr	Selling Company	Company	F2i Sgr is a private equity firm managing the funds that held the 40% stake in Iren Acqua.
Iren	Parent Company	Company	Iren is the parent company of Ireti, overseeing the integration and operation of utility services.
Rothschild & Co	Financial Advisor	Company	Rothschild & Co provided financial advisory services to Ireti for the acquisition transaction.
Luca Dal Fabbro	Individual – Executive Chairman	People	Luca Dal Fabbro is the Executive Chairman of Iren, providing strategic insights on the transaction.