Deutsche Bahn, Germany's state-owned railway operator, has agreed to sell its European public transport subsidiary, Arriva, to US-based infrastructure investor I Squared Capital, the company announced on Thursday.
Last week, Reuters reported that the sale would value Arriva at around €1.6 billion including debt.
The transaction is expected to complete in 2024, subject to the customary closing conditions, including the approval of the Deutsche Bahn's supervisory board and the German transport ministry.
British-based multinational public transport company Arriva has about 35,500 employees and operates in 10 European countries. It became a subsidiary of Deutsche Bahn in 2010.
Arriva has bus and train units in the UK – including the famous red London buses – as well as operations in the Netherlands, the Czech Republic, Croatia, Hungary, Italy, Poland, Slovakia, Slovenia and Spain.
Deutsche Bahn Chief Financial Officer Levin Holle said in a statement that “Arriva has good prospects for sustainable growth as market liberalization in Europe progresses.”
I Squared Capital, headquartered in Miami, was described in Thursday's statement as an independent global infrastructure manager with over $37 billion in assets under management.
Arriva Group CEO Mike Cooper said that it “has an established track record of supporting companies which provide essential services, and of investing in the energy transition.”