The
sale
of
Arriva
Group


by
Deutsche
Bahn
has
been
confirmed,
for
a
reported
price
of
£1.4
billion.

The
new
owners
are
US-based
I
Squared
Capital,
which
had
been
discussing
the
deal
with
DB
since
October.

Arriva
is
the
owner
of
transport
businesses
in
11
countries,
including
Chiltern
Railways,
CrossCountry,
the
London
Overground
concession
and
open
access
operator
Grand
Central,
and
maintenance
company
Arriva
Traincare.
It
also
owns
a
number
of
bus
companies,
including
Arriva
London
and
Green
Line.

DB
has
been
struggling
with
debts
for
several
years,
and
the
German
audit
office
has
suggested
that
the
national
rail
operator
is
in
a
state
of
‘permanent
crisis’.
The
sale
may
have
been
made
at
a
loss,
because
when
Arriva’s
British
shareholders
agreed
to
sell
the
Group
to
DB
in
2010,
the
price
was
£2.3
billion.

The
original
firm
was
set
up
in
north
east
England
as
car-leasing
business
Cowie
before
the
Second
World
War.
Cowie
moved
into
bus
operation
as
a
result
of
privatisation
in
the
1980s,
and
the
name
Arriva
dates
from
1997.

Arriva
Group
CEO
Mike
Cooper
said:
‘Closing
this
transaction
marks
an
important
milestone
and
an
exciting
new
chapter
for
Arriva.
It
is
an
opportunity
for
Arriva
to
recommit
to
working
alongside
passenger
transport
authorities
to
deliver
essential
transport
links
and
build
a
more
sustainable
future
for
our
colleagues,
customers
and
the
communities
we
serve. 
With
the
backing
of
I
Squared,
an
independent
and
highly
reputable
infrastructure
investor,
I
am
confident
that
we
will
deliver
on
that
commitment
for
the
benefit
of
the
millions
that
Arriva
serves.’

I
Squared
senior
partnet
Mohamed
El
Gazzar
said:
‘Passenger
transport
plays
a
vital
role
in
society,
connecting
communities
and
facilitating
economic
growth,
while
reducing
carbon
emissions
and
congestion.
Arriva
plans
to
be
at
the
heart
of
this
agenda,
working
alongside
its
transport
authorities
and
clients.
Arriva’s
ambition
for
the
decarbonisation
of
its
fleets
also
aligns
with
I
Squared’s
strategy
to
develop
and
scale
assets
with
technologies
that
accelerate
the
energy
transition.’

I
Squared
said
Arriva
and
its
operating
companies
have
all
transferred
to
I
Squared
as
part
of
the
deal,
ensuring
continuity
of
services
and
reassurance
for
employees,
who
will
continue
without
any
changes
to
their
conditions
of
employment.