CBRE Investment Management, through its Private Infrastructure team, is to acquire the bus division of Torghatten AS (Torghatten Land), which comprises Norgesbuss AS, Trønderbilene AS, Torghatten Buss AS, Sørlandsruta AS, Fosen Verkstedservice AS and TTS Bil-og, Dekksenter AS.
This investment is in keeping with the firm’s commitment to delivering sustainable real assets solutions.
CBRE Investment Management is making the investment on behalf of one of its funds as well as some of its separately managed accounts. It represents CBRE Investment Management’s third infrastructure investment completed in the Nordics since 2019.
Torghatten Land is one of Norway’s largest bus operators and also has a presence in Sweden. The bus operator provides public bus services for Public Transport Authorities and, to a limited extent, commercial bus services and workshop services (maintenance and repair for vehicles including servicing Torghatten’s bus fleet). The group employs approximately 2,200 employees and operates approximately 1,500 buses.
Torghatten Land is an industry leader in shifting to electrical vehicles (EV) and has been focusing on transitioning its bus fleet toward greener propulsion technologies. By 2022, Torghatten Land will operate 159 EV buses, which represents over 10 per cent of its fleet.
“We are acquiring a leading bus operator with a strong performance track record in a market that demonstrates non-cyclical characteristics due to the critical need for public transport,” says Andreas Köttering, Head of Europe Private Infrastructure at CBRE Investment Management. “Our continued investment into sustainable transport is also of significant importance to us as a business. With the fleet continuing to transition to electric within the next few years, we expect that we will be operating a transport business with a significantly reduced carbon footprint, which aligns with our ambitions to achieve carbon net zero performance by 2040.”
“The Board has over a period of time received inquiries from several parties for Torghatten Land, highlighting the potential for the bus division to be a stand-alone entity. The transaction was therefore initiated on the back of several offers, and as such is not a result of an active and structured sales process,” says Roger Granheim, CEO of Torghatten AS, and continues; “We consider CBRE Investment Management to be a strong future owner of Torghatten Land who can support and further develop the division on several levels in the years to come. The transaction will make Torghatten AS a pure play sea transportation company, with a continued focus on the further development of sustainable transportation by ferries and express boats.”
The acquisition of Torghatten Land is subject to customary closing conditions and regulatory approvals and is expected to close in Q4.
CBRE Investment Management was advised in this transaction by financial adviser, PwC, and legal counsel, Thommessen. Torghatten was advised by financial adviser, Nordea Bank Abp, filial in Norway and legal counsel, the law firm Selmer AS.
