In a statement U.S. private equity firm KKR & Co Inc said, it will acquire New Zealand’s largest bus company, Ritchies Transport, marking its first infrastructure investment in the country.
Both companies did not disclose the value of the deal; KKR only mentioned that it made the investment through its Asia-Pacific infrastructure fund.
Buses offer a “highly visible opportunity to encourage the adoption of zero-emissions technology,” said Andrew Jennings, a director at KKR’s infrastructure team, while noting the growing demand for greener transport in New Zealand.
Buses account for 75% of public transport New Zealand where Ritchies has a fleet of over 1,600 buses.
After the acquisition, the Ritchie family will continue to have a stake and continue to lead the company.
Rothschild & Co was KKR’s financial adviser, while Ritchies was advised by Cameron Partners.