Global asset manager KKR will acquire New Zealand-based Ritchies Transport Limited as its first infrastructure investment in New Zealand, according to an announcement.
KKR is making the investment from its KKR Asia Pacific Infrastructure Fund. Other details of the transaction were not disclosed.
The firm said the Ritchie family, which founded Ritchies in 1935, will continue to hold a stake in the company. Andrew Ritchie, director of operations at Ritchies, will be appointed as CEO.
The investment will be used to help Ritchies to better connect local communities, support the country’s expanding public transport network and promote greener transportation solutions, according to the announcement.
One of the largest transport providers in New Zealand, Ritchies owns a fleet of more than 1,600 vehicles and a network of 42 depots across the country. The company provides public transport solutions to the government, local councils, and private customers.
“We see continued demand for high-quality, greener public transport solutions in New Zealand. Buses account for 75% of total public transport trips made in the country and play a critical role in connecting people to places. They also represent a highly visible opportunity to encourage the adoption of zero-emissions technology,” said Andrew Jennings, a director at KKR’s infrastructure team.
Earlier this year, KKR raised its first Asia Pacific infrastructure fund at $3.9 billion, the largest in the region. By then, the firm had committed $1.8 billion across six investments as part of its dedicated Asia Pacific infrastructure strategy, which was launched in 2019.
KKR’s Asia Pacific infrastructure portfolio includes India Grid Trust, India’s leading infrastructure investment trust; Virescent Infrastructure, a renewable energy company in India; Eco Solutions Group, a leading environmental services provider in South Korea; First Gen, a Philippines-based power producer; TSK Corporation, an environmental services management company in South Korea, and Pinnacle Towers, a telecom infrastructure provider in the Philippines.