I Squared Capital agreed to buy Deutsche Bahn AG’s Arriva transport business, which operates London’s iconic red double-decker buses.
(Bloomberg) — I Squared Capital agreed to buy Deutsche Bahn AG’s Arriva transport business, which operates London’s iconic red double-decker buses.
The Miami-based infrastructure investment firm is expected to complete the deal in 2024, according to a statement published on Thursday. Financial details were not disclosed. Bloomberg News reported in August that I Squared was in exclusive talks to buy Arriva at a valuation of about €1.6 billion ($1.7 billion).
Sunderland, England-based Arriva runs bus and train services in Britain and several continental European countries. As well as some London buses, it operates the London Overground network of suburban rail services and Chiltern Railways, which runs passenger trains between the UK capital and Birmingham.
German state-owned railroad operator Deutsche Bahn acquired the business in 2010. Previous attempts to list or sell the unit failed in 2019, when bids came in well below book value. Since then, Arriva trimmed its footprint by selling businesses in Denmark, Serbia and Poland to turnaround specialist Mutares SE.
Bloomberg News reported in June that I Squared had emerged as the frontrunner for Arriva because other suitors only wanted parts of it.
A sale of Arriva would help Deutsche Bahn streamline its operations and reduce its huge debt pile as it seeks to modernize its domestic railroad operations. Deutsche Bahn is also exploring a sale of its DB Schenker logistics unit, which could be valued at around €20 billion.
–With assistance from Todd Gillespie.
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