Deutsche Bahn has sold the Arriva Group to I Squared Capital

Deutsche Bahn AG (DB) and I Squared Capital have agreed to sell the entire Arriva group, including all its operations in 10 European markets, to infrastructure investment manager I Squared. The transaction is expected to be completed in 2024, subject to customary closing conditions, including the approval of the DB Supervisory Board and the German Federal Ministry for Digitization and Transport.

Deutsche Bahn’s strategic goal is to achieve record investments in green railways in our core business, coupled with a significant increase in the German Federal Government’s takeover of German railway infrastructure.

– The recently signed purchase agreement is therefore in keeping with the spirit of Strong Rail. At the same time, the sale to I Squared will give Arriva new opportunities to support its growth potential for the electrification of European fleets in the future. For us, the agreed sale is an important step to focus more on further growth in the rail transport sector in Germany,” says Levin Holley, Member of the Board of Management for Finance and Logistics and CFO of Deutsche Bahn AG.

Areva announces:

– As part of DB’s Strong Rail Group strategy, the company has announced its intention to sell Arriva to enable further growth in rail transport in Germany and focus its resources on its core business.

Leading investor

iSquared is a leading investor in transportation, logistics and decarbonization technology, with a track record of investing significant capital in companies to support their transition to modern, sustainable facilities.

I Squared’s previous investments include TIP Group, which specializes in freight services, which has invested significant resources in fleet transformation; Aggreko, a global energy solutions company headquartered in Glasgow; As well as renewable energy and energy conversion companies such as Conrad Energy and Energia.

Deutsche Bahn acquired the British company Arriva in 2010. In recent years, DB has successfully worked with Arriva to stabilize its operations following the impact of Coronavirus (COVID-19) and focused its sustainable growth strategy on relevant markets. The sale of non-core operations, including Areva Sweden and Portugal 2022 as well as Areva Serbia, Denmark and Poland (bus), was completed this year.

Multi-billion dollar business

According to media reports, the deal will value Arriva at approximately 1.6 billion euros, including its debt.

Arriva, responsible for transporting 1.5 billion rail and bus passengers annually in ten countries, employs 35,500 people and offers a mix of train, local bus, shuttle and tram services. In the UK, the company operates 4,700 buses and oversees 15 per cent of the passenger network, including the London Overground, CrossCountry and Chiltern Railways franchises.

The deal would value Arriva, the prominent operator of London’s iconic red buses and UK train services, at around €1.6 billion, including debt. Arriva, responsible for transporting 1.5 billion rail and bus passengers annually in ten countries, employs 35,500 people and offers a mix of train, local bus, shuttle and tram services. The company operates 4,700 buses in the UK and oversees 15 per cent of the passenger network, including London.

Source: Deutsche Bahn/Sustainable Buses, Areva