Arriva Group announced on 3rd June 2024 the completion of its acquisition by infrastructure investor I Squared Capital. The acquisition, first announced in October 2023, encompasses all of Arriva’s businesses across 11 countries. Deutsche Bahn had acquired Arriva in 2010.

The transaction, according to media reporting out in October 2023, would value Arriva at approximately 1.6 billion euros, encompassing its debt. The Financial Times noted that “in 2022, Arriva’s annual sales rose 3.6 per cent year on year to €4.2bn, according to Deutsche Bahn’s annual report, accounting for 7.5 per cent of the German group’s total revenue. The unit is barely profitable, generating an adjusted operating profit of just €12mn last year, up from an operating loss of €73mn in 2021″.

Arriva – I Squared Capital

“Arriva Group and its operating companies have all transferred to I Squared as part of the deal, ensuring continuity of services across Arriva’s footprint, and reassurance for employees who will continue to serve communities without any changes to their employment conditions”, Arriva points out in a press note.

I Squared, in Arriva’s words, is a leading investor in transport and logistics and in decarbonisation technologies, with a track record of investing significant capital to create sustainable, long-term growth across its portfolio, supporting management teams in improving operational performance, and investing to support the energy transition.

Mike Cooper, Arriva Group CEO, welcomed the news and 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”.

Mohamed El Gazzar, Senior Partner at I Squared, 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.” 

Enrico Del Prete, Fund Partner at I Squared, added: “Decarbonising public transport is one of the next big challenges in the energy transition and we are excited to work with Arriva to provide the support and investment that will help the company achieve its vision of cleaner cities and greener public transport networks. We see genuine growth potential that can be unlocked at Arriva over the long-term. We are excited for what comes next and look forward to working with the whole Arriva team as we capitalise on the opportunities in the sector together.”


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