Deutsche Bahn AG (DB) and I Squared Capital, a leading global infrastructure investment manager, have signed an agreement for Arriva Group sale including all of its operating businesses across 10 European markets.
The transaction is expected to complete in 2024, subject to the customary closing conditions, including the approval of the DB Supervisory Board and the Federal Ministry for Digital and Transport of the Federal Republic of Germany.
Deutsche Bahn acquired the British company in 2010. Over the past few years, DB has worked successfully with Arriva to stabilise its business after the Covid impact and to focus the company’s sustainable growth strategy on relevant markets. The sale of non-core markets, including Arriva Sweden and Portugal in 2022 and Arriva Serbia, Denmark and Poland (Bus) was completed this year.
“This is a great opportunity for Arriva and the start of an important new chapter for our business. I know that the team at I Squared share our belief in providing sustainable transport services that cater for the needs of tomorrow, as well as the pressures of today,” Mike Cooper, Arriva Group CEO said.
As part of DB’s Strong Rail Group strategy, the company announced its Arriva Group sale intention to enable additional growth in rail transport in Germany and allow it to focus its resources on its core business.
“We are happy that I Squared is willing to support Arriva in its future growth. Arriva has good prospects for sustainable growth as market liberalisation in Europe progresses. The strategic goal of Deutsche Bahn is to make record level investments in environmentally friendly rail in our core business combined with the massive increase of investment of the German Federal Government into our German rail infrastructure. The purchase agreement signed is therefore in the spirit of Strong Rail,” said Levin Holle, Member of the Management Board for Finance and Logistics and CFO of Deutsche Bahn AG.
I Squared has a track record of successful investments in infrastructure companies – from energy solutions companies such as Aggreko, through to transport and logistics services companies including TIP Group.
Arriva employs 35,500 people and delivers around 1.5 billion passenger journeys across 10 European countries (the Czech Republic, Croatia, Hungary, Italy, the Netherlands, Poland, Slovakia, Slovenia, Spain and the United Kingdom).
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