Dealmakers act as NZ Bus is bought for at least $125m

by Sol Dolor21 Sep 2019

Dealmakers from two top-tier firms worked on the acquisition of NZ Bus.

MinterEllisonRuddWatts advised private equity firm Next Capital on its acquisition of the transport company from infrastructure investor Infratil, which was counselled by Russell McVeagh.

Signed last December, the acquisition was completed at the start of the month after receiving all required regulatory and council approvals. Infratil’s divestment of the company, which it was invested in for 14 years, comes after its strategic review in 2018. Infratil said that the final purchase price, after post-completion adjustments, was between $125m and $145m.

MinterEllisonRuddWatts said that it worked on the acquisition and the financing arrangements for the deal. Financing was completed through vendor finance and senior debt from a syndicate of major New Zealand banks.

Corporate partner Mark Forman led on the M&A side, while baking partners Steve Gallaugher and Tom Fail worked on the financing aspects of the deal.

Forman said that the deal is significant for the growing population and economy of New Zealand.

“The delivery of efficient and reliable public transport services is critical to support our country’s growth,” he said. “This transaction represents a substantial investment by Next Capital into a business that is an important part of New Zealand’s transport infrastructure.” 

Russell McVeagh told NZ Lawyer that its deal team was headed by partner Mei Fern Johnson and special counsel Gareth Worthington and Debbie Booth.