Ritchies Transport is set to be sold to US-based global investment company KKR.
The companies did not disclose the deal value which was made through KKR’s Asia Pacific Infrastructure Fund.
Ritchies is one of the country’s biggest bus operators and the investment marks KKR’s first infrastructure deal in New Zealand.
KKR says it aims to support the expanding public transport network and promote greener transportation solutions.
Upon completion of the transaction, the Ritchie family will continue to hold a stake in the company. Andrew Ritchie will be appointed as chief executive of the company as Glenn Ritchie retires.
The transaction is also subject to customary closing conditions and is conditional on OIO approval which is expected within four to five months.
Founded in Temuka in 1935, Ritchies has a fleet of more than 1600 vehicles and a network of 42 strategically located depots across the country. Its services provide for government, local councils, and private customers.
Ritchies operations director Andrew Ritchie says joining the KKR family “is the start of an exciting new chapter for the company”.
“Glenn has been an integral part of the business for most of his life, and been instrumental in helping the company achieve its growth and success as a nationwide transport operator.
“He has left an indelible mark on the company and its staff and will be missed.
“We would like to thank our many loyal customers and staff all over New Zealand, many of whom have been with Ritchies along our journey.
“Now it’s time to leverage KKR’s expertise to help take Ritchies forward as we look to the next 86 years. We were very impressed by KKR’s long track record of adding value to the businesses, investments and acquisitions they have made across numerous industry sectors around the world,” he says.
KKR partner and Asia Pacific infrastructure head David Luboff says the team is excited to invest in a leading business like Ritchies and work alongside its talented management team.
“Our investment also reiterates KKR’s strong commitment to investing in critical infrastructure assets in New Zealand and globally through our expanding portfolio,” he says.
KKR infrastructure team director Andrew Jennings says there is 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.
“We look forward to working closely with the Ritchie family to continue their legacy and working in partnership with the government to deliver safe, reliable and sustainable public transport services,” he says.
