Major Legal Players Freshfields and Skadden Drive Deutsche Bahn's Arriva Sale to I Squared Capital

Major Legal Players Freshfields and Skadden Drive Deutsche Bahn's Arriva Sale to I Squared Capital

Freshfields Bruckhaus Deringer and Skadden Arps Slate Meagher & Flom have been engaged in Deutsche Bahn’s sale of its transport business, Arriva, to the Miami-based infrastructure investor I Squared Capital.

The transaction places a reported value of €1.6 billion on Arriva, a company responsible for running train services and iconic red London buses in the UK. Freshfields has provided counsel to Deutsche Bahn and Arriva, with Skadden representing I Capital in the deal.

Deutsche Bahn has announced the sale of Arriva to facilitate further expansion in the German rail transport sector and direct its resources towards its primary operations. The decision to divest Arriva was initially made in 2019 as part of a strategy to mitigate the company's debt load, which amounted to €28.8 billion as of the close of 2022.

The Freshfields team was spearheaded by partners Richard Thexton and David Sonter, along with senior associate Yvonne Barry. They were ably supported by a team of associates, including Tim Wuttke-Henshall, Charmaine Ho, and Christine Khuat. Partner Nick French, senior associate Theo Souris, and associate Aaron Hanif handled the crucial antitrust aspects.

Tax matters were overseen by partner Jill Gatehouse and associate Nicola Cavey, while partner Andrew Murphy and senior associate Lauren Jackson provided counsel on pension and employment issues. Separation and intellectual property support were expertly managed by partner Giles Pratt, senior associate Tony Gregory, and associate Jamaal Jackson.

Freshfields stated that their team collaborated extensively with Arriva and Deutsche Bahn during an extended period to successfully execute the transaction. They worked closely with key members of the Deutsche Bahn legal team, including Alexander Wismeth, Martin Lamm, Thomas Götze, and Christian Wörz, as well as the M&A team, which comprised Stefan Klenke, Thomas Wagner, and Philipp Lohöfer. Additionally, they engaged with the Arriva legal team, featuring Scott Marshall and Helen Seeber, to ensure a smooth and efficient process.

Meanwhile, the Skadden team comprised several key individuals, including private equity partners Richard Youle, who also serves as co-head of private equity, and Steven Hannah. Their team included corporate counsel Benjamin Davies, Emma Ghaffari, and Chetan Sheth, along with associates Janou Kannangara, Ashleigh Morton, and Iseult Martin. Eve-Christie Vermynck, who specialises in IP and technology matters, served as counsel, while tax expertise was provided by partner Alex Jupp. M&A matters were handled by partner Giorgio Motta in Brussels, and banking matters were overseen by partner Pete Coulton. All these legal professionals are based in London unless otherwise specified.

The law firm has previously provided counsel to I Squared in various transactions. Notably, they advised on I Squared's £2.3 billion acquisition of the Scottish energy company Aggreko in 2021, in conjunction with TDR Capital. In 2019, the firm also played a pivotal role in I Squared's acquisition of the auto leasing firm PEMA from Société Générale.