The takeover of Sunderland transport group Arriva - one of the North East’s largest companies - has been formally completed.
German national rail firm Deutsche Bahn AG announced last year that it had agreed a deal to sell the bus and train operator to I Squared Capital, a Miami-based group that invests in global infrastructure and has assets around the world. The deal has been reported as being worth around £1.4bn, with Arriva saying that its new owners have a reputation for “helping management teams to improve operational performance while also investing significant capital in companies to support their transition to sustainable public utilities”.
The change of ownership was subject to approval from the Deutsche Bahn supervisory board and the German Federal Ministry for Digital and Transport, but it has now been announced that acquisition has been approved, taking in Arriva businesses across 11 countries.
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Arriva has its headquarters in Sunderland and is one of the North East’s largest companies by turnover, having a workforce of more than 34,000 people in countries around Europe. It operates some local bus services in the North East and owns the Grand Central rail firm but lost the Northern rail franchise in 2020.
The company was originally established as TSK Cowie in Sunderland in 1938 as a secondhand motorcycle dealer, before being relaunched as a car dealership with a vehicle hire division. It became involved in the bus sector amid deregulation in the 1980s and renamed itself as Arriva in 1997.
Arriva CEO Mike Cooper 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.
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“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.”