Deutsche Bahn and Miami-based infrastructure investor I Squared Capital have signed an agreement for the sale of the German rail operator’s international transport business Arriva Group, the companies said on Thursday.
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, they said in a statement.
Citigroup advised Deutsche Bahn, and I Squared was advised by Morgan Stanley and UBS.
Reuters already reported last week that the sale would value Arriva, which operates red London buses and train services in the UK, at around 1.6 billion euros ($1.68 billion) including debt.
Arriva transports 1.5 billion rail and bus passengers a year with operations across 10 countries and more than 34,000 employees, according to its website.
The German state-owned railway company has attempted selling parts of Arriva in the past to raise cash to lower its debt and invest in its domestic infrastructure.