I Squared Capital has reached an agreement with Deutsche Bahn, the national railway company of Germany, to acquire its international transport business, Arriva Group.
The transaction include all of Arriva Group, including its entire operating businesses across 10 European markets. Although the companies did not disclose the sales price, sources with knowledge of the matter told Reuters the deal would value Arriva at about €1.6 billion ($1.7 billion) including debt.
Deutsche Bahn acquired the British company in 2010 and worked with Arriva throughout the past few years to stabilize its business following the COVID-19 pandemic and to focus the company’s sustainable growth strategy on relevant markets. Deutsche Bahn plan is to sell Arriva to enable additional growth of rail transport in Germany and allow it to focus its resources on its core business.
Mohamed El Gazzar, managing director at I Squared, told Reuters the company plans to invest â‚
