KKR makes first infrastructure deal in New Zealand

The KKR Asia Pacific Infrastructure Fund has completed a recent deal for the acquisition of Ritchies Transport Limited, one of New Zealand’s foremost transportation operators. This is also KKR’s first infrastructure deal in the country.

Founded in Temuka in 1935, Ritchies is home to a fleet of over 1,600 vehicles, and a network of 42 strategically placed depots across the territory. 

The firm’s clients include the government, local councils, and private clients, to whom it provides seamless and effective mass transit solutions in some of the country’s biggest cities.

Rothschild & Co. served as KKR’s financial adviser, while Cameron Partners served as Ritchies’ financial adviser. After this deal is finalized, the Ritchie family will retain ownership of a minority stake in the firm. 

“Our investment reiterates KKR’s strong commitment to investing in critical infrastructure assets in New Zealand, and globally through our expanding portfolio,” says David Luboff, partner and head of Asia-Pacific infrastructure at KKR.

The firm considers Ritchies a viable investment option primarily because buses currently account for 75% of total public transport trips made in New Zealand. Possibilities for expansion abound as demand for high-quality, sustainable public transport solutions continues to increase.