BERLIN (AP) — Germany's state-owned railway operator, Deutsche Bahn, said Thursday that it has agreed to sell its European public transport subsidiary, Arriva, to U.S.-based infrastructure investor I Squared Capital.
Deutsche Bahn didn't disclose the value of the planned sale. It said the transaction should be completed next year. The company is selling Arriva “to enable additional growth in rail transport in Germany and allow it to focus its resources on its core business.”
Arriva has about 35,500 employees and operates in 10 European countries. It has bus and train units in the U.K. and also has operations in the Netherlands, the Czech Republic, Croatia, Hungary, Italy, Poland, Slovakia, Slovenia and Spain.
Deutsche Bahn acquired the British-based company in 2010. Arriva businesses in “non-core markets," including Sweden and Portugal, already have been sold.
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.”