Press releases
Arriva to acquire German transport company
17 January 2007
Leading European passenger transport group, Arriva plc, today announced that it has contracted to acquire 85.12 per cent of German bus and rail company Osthannoversche Eisenbahnen AG (OHE) for Euro 30 million (£20.5m).
Arriva-Bachstein GmbH, a consortium between Arriva and regional transport operator Verkehrsbetriebe Bachstein GmbH, submitted a bid for the business after the German federal government, Niedersachsen (regional government in Lower Saxony ) and Deutsche Bahn decided to sell their shares in the business.
Arriva is the major partner in the consortium owning 86 per cent. Verkehrsbetriebe Bachstein GmbH holds the remaining 14 per cent.
OHE's total combined revenue at full year 2005 was Euro 130 million (£89 million) and the business broke even whilst covering its interest cost.
OHE is an established transport provider based in Celle near Hannover in the north of Lower Saxony . It has over 400 vehicles providing bus services in and around Hannover, Braunschweig , Bremen and Hamburg totalling more than 30 million kilometres per annum.
The business is also a shareholder in Metronom which currently operates two rail passenger contracts with 18 locomotives and 124 double decker carriages between Uelzen, Hannover and Gottingen as well as Bremen , Hamburg and Uelzen. Metronom has also won two further contracts in the same region starting in the next three years.
OHE owns and manages over 282 kilometres of rail infrastructure linked to a separate rail freight operation. It also manages freight and storage at the ports of Uelzen, Wittingen and Luneburg and has additional road freight operations.
The acquisition is subject to approval from the German competition authority and the satisfactory outcome of negotiations with VBL, the German pension authority. The acquisition is expected to be confirmed and finalised by the end of February.
Arriva's chief executive David Martin said:
This acquisition will be a welcome addition to our increasing European operations and further strengthens our position in the German transport market. OHE is a diverse business and as a leading European transport group we can use our wide experience to help the business develop whilst also learning from our experienced consortium partners and the local management team.
