Portfolio Company News

Deutsche Bahn signs agreement to sell Arriva to I Squared

BERLIN & LONDON–(BUSINESS WIRE)–Deutsche Bahn AG (DB) and I Squared Capital have signed an agreement for the sale of the whole of Arriva Group, including all of its operating businesses across 10 European markets, to I Squared, a leading global infrastructure investment manager. 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.

As part of DB’s Strong Rail Group strategy, the company announced that it intended to sell Arriva to enable additional growth in rail transport in Germany and allow it to focus its resources on its core business.

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.

Dr Levin Holle, Member of the Management Board for Finance and Logistics and CFO of Deutsche Bahn AG: “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. At the same time, the sale to I Squared will give Arriva new options to support its growth potential, for example for the future electrification of European fleets. For us, the agreed sale is an important step to focus even more on additional growth in rail transport in Germany.”

I Squared has extensive experience in providing essential infrastructure, including transport, logistics, energy, utilities, and digital infrastructure around the world. The firm is committed to creating sustainable, long-term growth across its portfolio, supporting management teams in improving operational performance, and investing to support the energy transition with lower-carbon infrastructure.

I Squared is a leading investor in transport and logistics and in decarbonisation technologies, with a track record of investing significant capital in companies to support their transition to sustainable modern public utilities. Examples of I Squared’s prior investments include TIP Group, the freight services specialist, where it has invested significantly in fleet transformation, Aggreko, the global energy solutions company based in Glasgow, as well as renewables and energy transition companies Conrad Energy and Energia.

“Transport accounts for around one-fifth of global CO₂ emissions. Three-quarters of this is from road transport, and a greener public transport sector is critical to the shift to lower-carbon infrastructure,” said Gautam Bhandari, Global CIO and Managing Partner of I Squared. “Arriva’s strategy for net-zero operations and the decarbonisation of its fleet aligns with our strategy to develop and scale assets with technologies that accelerate the energy transition, as well as providing cleaner air in cities and towns by investing in green public transport. We are excited to work with Arriva and we will invest to support its future growth as a major European bus and rail operator.”

Mike Cooper, CEO of Arriva Group, said: “We want to see a future where people choose to leave their car at home, a future with less traffic congestion and cleaner air. This transaction marks an exciting next stage for us, and will deliver significant benefits for our colleagues, our passengers and the many Passenger Transport Authorities we partner with across Europe, enabling us to play our role in delivering a better future. I Squared has an established track record of supporting companies which provide essential services, and of investing in the energy transition. We are delighted that they have committed to provide Arriva with long-term capital for investment in innovation across our services, our assets, and our people. We’re confident that Arriva and I Squared together can play a vital role in delivering innovative and sustainable public transport offerings across Europe.”


About Deutsche Bahn AG
DB Group is a leading provider in the mobility and logistics sector, and primarily consists of the integrated rail system and the two major international subsidiaries DB Schenker and DB Arriva. The integrated rail system includes our passenger transport activities in Germany, our rail freight transport activities, the operating service units, and the rail infrastructure companies (RIC) in Germany. DB Group, with its head office in Berlin, employs about 340,000 people. Our business operations are focused on rail transport in Germany.

About I Squared Capital
I Squared Capital is an independent global infrastructure manager with over $37 billion in assets under management focused on investing in North America, Europe, Asia, and Latin America. Headquartered in Miami, the firm has more than 230 professionals across its offices in Hong Kong, London, New Delhi, Singapore, Taipei, and Sydney. I Squared has invested in a diverse portfolio of 72 companies in 59 countries with over 27,000 employees across the utilities, energy, digital infrastructure, transport, environmental infrastructure, and social infrastructure sectors. I Squared is one of the largest investors in transport and logistics in Europe and its portfolio companies provide essential services to millions of people every day.

About Arriva Group
Arriva is a leading provider of passenger transport across Europe, employing around 35,500 people and delivering around 1.5 billion passenger journeys across 10 European countries. With buses, trains, coaches, trams, waterbuses, bike-sharing systems, and on-demand transport solutions, Arriva proudly connects people and communities safely, reliably and sustainably, delivering these services in a better way, every day. The activities of Arriva are divided into four lines of business: UK Bus, UK Trains, The Netherlands and Mainland Europe. Arriva has operations in the Czech Republic, Croatia, Hungary, Italy, the Netherlands, Poland, Slovakia, Slovenia, Spain and the United Kingdom.


I Squared
Brunswick Group isquared@brunswickgroup.com
UK: Fiona Micallef-Eynaud / Peter Hesse +44 207 404 5959
Germany: Alexa von Dryander +49 172 688 7385

Deutsche Bahn
Dagmar Kaiser +49 030 297 61030

Camilla Wrey +44 7971 911899