(19 Oct 2023, 7:25 am)RobinHood Internal communications this morning confirming the complete sale of Arriva to I Squared.

"Today I’m pleased to share a significant and exciting announcement about the future of our company. Our shareholder, Deutsche Bahn (DB), has entered into an agreement with a company called I Squared Capital - a global infrastructure manager - to purchase the whole of the Arriva Group."

(19 Oct 2023, 9:04 am)Andreos1 https://www.ft.com/content/ec540389-37eb-46b2-9f08-c4222106cb62

They're planning quite the investment.

(19 Oct 2023, 9:26 am)Michael What does it say?, need to pay to read.

Infrastructure fund I Squared Capital has said it will invest more than €2bn in growing and electrifying the fleet of Arriva after taking control of one of the biggest operators of red London buses and train services in the UK.

The Miami-based infrastructure investment group on Thursday announced a deal to acquire UK-based Arriva, Deutsche Bahn’s international transport business, and expressed interest in further transport deals in Europe.

Financial terms were not disclosed, but the deal is worth about €1.6bn including debt, the FT previously reported.

Mohamed El Gazzar, a senior partner at I Squared Capital, said in an interview that the deal represented a bet on both decarbonising transport and the UK more broadly.
even more on additional growth in rail transport in Germany,” said Levin Holle, Deutsche Bahn’s chief financial officer, in a statement.

Deutsche Bahn had considered a partial sale as early as 2016, having bought Arriva in 2010 for £1.5bn. Arriva has also sold off its operations in some non-core markets in recent years.

Headquartered in Sunderland, Arriva has 35,500 employees and operates rail services, local buses, commuter coaches and trams, transporting 1.5bn rail and bus passengers a year.

The company is best known for its position as one of the largest bus operators in London, where it operates the city’s iconic red double-decker buses for Transport for London.

It also has a significant presence in other parts of the UK bus market, and is responsible for about 15 per cent of the UK passenger rail market, including running trains on the London Overground network, and the CrossCountry and Chiltern Railways franchises.

Among its other European operations, Arriva operates buses in Spain and Italy, and trains in the Netherlands.

The transaction is expected to be completed next year subject to customary closing conditions, including approval by German officials.

(19 Oct 2023, 9:24 am)Storx I might aswell say it before someone else does, wonder if they go for more areas if they would seriously consider taking over GoNorthEast.

It's a complete basket case, as it is, and Arriva has never had a presence in it's home city (which it would gain from doing so).

I seriously wouldn't be surprised if GoAhead want shot of it before long as it's clearly going nowhere under them. Apart from the Coast Road and Peterlee to Sunderland, there's not really much overlap nowadays.

(19 Oct 2023, 9:33 am)Andreos1 Would it get through the Monopolies Commission (or whatever its called these days)?

(19 Oct 2023, 9:33 am)Andreos1 In a nutshell

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(19 Oct 2023, 9:04 am)Andreos1 https://www.ft.com/content/ec540389-37eb-46b2-9f08-c4222106cb62

They're planning quite the investment.

(19 Oct 2023, 9:24 am)Storx I might aswell say it before someone else does, wonder if they go for more areas if they would seriously consider taking over GoNorthEast.

It's a complete basket case, as it is, and Arriva has never had a presence in it's home city (which it would gain from doing so).

I seriously wouldn't be surprised if GoAhead want shot of it before long as it's clearly going nowhere under them. Apart from the Coast Road and Peterlee to Sunderland, there's not really much overlap nowadays.

(19 Oct 2023, 9:33 am)Andreos1 In a nutshell

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Would it get through the Monopolies Commission (or whatever its called these days)?

(19 Oct 2023, 10:29 am)Adrian I'm not convinced. Same firm that were after First Group last year.

These private equity firms tend to not do things for the greater good of the public. We often talk about 'operators' being at the whim of their shareholders, but these firms are on another level. They'll want a return at all costs, so I think we'll see some severe asset stripping.

(19 Oct 2023, 10:46 am)mb134 I'd be a bit more optimistic. 

Realistically, given they also went after First, I think it's clear they want to invest in a public transport company and the opportunity with Arriva was probably appealing given how desperate DB seemed to be to sell. There isn't much left at Arriva to strip, I'd be massively doubtful of them being able to sell parts off individually for more than what they paid for them. 

As far as I can see majority of their investment has been in infrastructure, which from what I understand is much more suited to longer term, consistent returns. Selling parts of Arriva off to make a quick buck doesn't fit that at all.

(19 Oct 2023, 10:56 am)Adrian Maybe it's the impending franchising, as Ambassador suggests? The business is of course more lucrative, if you've got a foothold in the market when a model of guaranteed income comes in.

Manchester are the first, but we know it's extremely likely to be announced in the North East next May, with other MCA regions following suit. Labour, when inevitably elected, have also promised to roll out this power to non-MCA areas.

(19 Oct 2023, 10:56 am)Adrian Maybe it's the impending franchising, as Ambassador suggests? The business is of course more lucrative, if you've got a foothold in the market when a model of guaranteed income comes in.

Manchester are the first, but we know it's extremely likely to be announced in the North East next May, with other MCA regions following suit. Labour, when inevitably elected, have also promised to roll out this power to non-MCA areas.

(19 Oct 2023, 11:35 am)Storx I'd imagine their bigger aim is to spend money and get Arriva lucrative, they bought the thing under value. With some small investment they could turn it around for a profit pretty easily. Not to mention they are a sleeping giant in London, in recent years, where the contracts are very lucrative.

Not to mention they have the scope to go into more rail contracts with Arriva Traincare etc. Something very similar to First. Another very lucrative area.

(19 Oct 2023, 12:00 pm)mb134 In terms of the UK bus business, I would think that would be the appeal given it's guaranteed income if you win the bid. 


I'd say that's probably more of a reason to keep them. For a low amount of money compared to what a successful Arriva would likely cost, they've got a foothold in the European public transport industry which essentially guarantees them consistent long term returns, which fits in with the rest of their investments?

(19 Oct 2023, 9:24 am)Storx I might aswell say it before someone else does, wonder if they go for more areas if they would seriously consider taking over GoNorthEast.

It's a complete basket case, as it is, and Arriva has never had a presence in it's home city (which it would gain from doing so).

I seriously wouldn't be surprised if GoAhead want shot of it before long as it's clearly going nowhere under them. Apart from the Coast Road and Peterlee to Sunderland, there's not really much overlap nowadays.

(11 Nov 2023, 8:48 pm)Metroline1511 Arriva may not have reached Sunderland for some time.  However, I did catch a bus to Sunderland from Darlington in 1998, I think route 21 or X21.

As an aside, Arriva do reach Sunderland through Grand Central Trains.  They also reached Sunderland when they ran the Metro.

(11 Nov 2023, 8:59 pm)Storx Yeah it would've been the X21, that was curtailed at Peterlee a few year back and last year curtailed at Sedgefield at the other end aswell so only Peterlee to Sedgefield now.

The 22 and 23, still run through but they've been reduced from 4 buses per hour down to 2 buses per hour aswell.

Must say I've always found it strange how a transport company who runs buses, was based in a city where it's never really been a main operator. Must be very very rare, I'm struggling to think of any. Stagecoach being Perth and First being Aberdeen just to pick the other big boys.

(11 Nov 2023, 9:03 pm)Andreos1 Continue the way they're going and GAG may be another to add to the list!

(11 Nov 2023, 8:48 pm)Metroline1511 Arriva may not have reached Sunderland for some time.  However, I did catch a bus to Sunderland from Darlington in 1998, I think route 21 or X21.

As an aside, Arriva do reach Sunderland through Grand Central Trains.  They also reached Sunderland when they ran the Metro.

(11 Nov 2023, 9:10 pm)Storx I was behaving and not mentioning them ha.

Wouldn't surprise me if they just ditched Newcastle altogether and move their registered office to the Tory HQ where their HQ is based. Two clowns in one office, probably share tips, as the way this strike is handled is as piss poor as the rail strike.