KKR acquires New Zealand bus company Ritchies Transport for $347 million

Global investment firm KKR is planning to acquire 86-year-old New Zealand bus company Ritchies Transport. Terms of the deal were not disclosed, but sources familiar with the matter say the deal is worth more than $347 million (NZD$500 million) to Ritchies.

On Thursday, the two companies signed definitive agreements under which KKR will acquire Ritchies. This is KKR’s first infrastructure investment in New Zealand. KKR said the acquisition of the bus company, which currently has a fleet of more than 1,600 vehicles and 42 depots across the country, will help it advance its mission to “better connect local communities, support the country’s growing public transport network and promote greener transport solutions”.

New Zealand still largely runs on internal combustion engines, but the country has plans to electrify. The government now requires all agencies and ministries to electrify their fleets within the next five years and aims to fully decarbonise public transport, which is mainly based on buses, by 2035. Kiwi Bus Builders, a New Zealand manufacturer, recently assembled a number of ADL electric buses that have made it onto the streets of Auckland.

Andrew Jennings, director of KKR’s infrastructure team, said in a statement that Ritchie’s buses will represent “a clear opportunity to encourage the adoption of zero-emission technologies” as New Zealand continues to see “demand for high-quality, greener public transport solutions.”

Last year, Ritchies acquired Red Bus, a bus operator in Christchurch that offered electric buses and some low-emission Euro 6 buses. Ritchies told TechCrunch that the company is also exploring hydrogen technologies as part of its efforts to offer the latest green public transport solutions.

KKR told TechCrunch that it has a plan to help Ritchies further electrify its fleet, saying the company has made progress globally in areas related to sustainable transportation and will use that experience to help advance the country on its path toward zero emissions.

The investment comes from KKR’s Asia Pacific Infrastructure Fund. The transaction is subject to OIO approval, which KKR said is expected within four to five months. Once the deal is completed, the Ritchie family will continue to hold a stake in the company and Andrew Ritchie, the current chief operating officer, will be appointed CEO of the company when Glenn Ritchie, the current CEO, retires.

This article has been updated to reflect new information provided by Ritchies.