Global infrastructure investment fund I Squared Capital has signed an agreement with German rail operator Deutsche Bahn (DB) to purchase UK-based bus and rail company Arriva.
DB announced the wholesale agreement on Thursday (19 October), which includes all of Arriva’s operating businesses across 10 European markets, in order to “focus resources” on its core rail business in Germany.
The transaction is expected to complete in 2024, subject to the approval of the DB Supervisory Board and Germany's Federal Ministry for Digital and Transport.
Commenting on the sale, Deutsche Bahn chief financial officer Levin Holle, said: “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.”
He added that the agreement with I Squared Capital will “give Arriva new options to support its growth potential”.
Arriva, which is currently focused on decarbonising its fleet of buses and trains, has operations in Czech Republic, Croatia, Hungary, Italy, the Netherlands, Poland, Slovakia, Slovenia, Spain and the UK.
Arriva Group CEO Mike Cooper said: “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."
DB acquired Arriva Group in 2010. The sale of non-core markets, including Arriva Sweden and Portugal was completed in 2022, while Arriva Serbia, Denmark and Poland (Bus) was completed earlier this year.