TPG set to acquire Australia’s largest bus operator in $4bn deal

Australia’s transport landscape faces a dramatic shift as a major investor moves to acquire Kinetic’s 11,000-strong bus empire spanning three continents.

Kinetic operates 40 per cent of buses in Queensland.

A fund controlled by global alternative asset management firm TPG is set to buy Australia’s largest bus operator Kinetic.

Kinetic, which began in Melbourne in 1978 and operates the SkyBus airport express service and has expanded internationally, was put on the market two years ago with expectations of a $4bn sale.

US-based TPG refused to comment on the looming Kinetic deal but it is understood that if it goes through the Australian company will be put into TPG’s Rise Fund – the impact platform which has grown into the world’s largest of its kind.

Kinetic is owned by Canadian pension fund OPTrust and British infrastructure manager Foresight Group, and through a series of acquisitions operates 40 per cent of buses in Queensland, one third of Melbourne’s bus network, and almost half of bus services in Tasmania.

It also has bus services in NSW, Western Australia and Northern Territory and is a significant operator in New Zealand.

Kinetic acquired 51 per cent of UYK-based international transport group Go-Ahead Group in 2021.

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In 2021 when it acquired UK-based international transport group Go-Ahead as a joint venture with Spanish company Globalvia for $1.27bn.

Through its 51 per cent shareholding in Go-Ahead Group, Kinetic operates buses in the United Kingdom, Singapore and Ireland, and railway services in the UK, Norway and Germany.

Under the leadership of group chief executive Michael Sewards Kinetic is headquartered in Melbourne. The company refused to comment.

TPG is being advised by UBS’ Nick Alexander and Azure Capital, while Kinetic’s owners have engaged Macquarie’s Tom Butcher.

At this stage the sale may be for Kinetic’s Australian and New Zealand assets or the entire business. It is expected to be finalised this week

Kinetic has a global team of 36,000 people and a fleet of 11,000 buses, with over 4900 buses and 7300 staff operating in Australia and New Zealand.

In Australia and New Zealand it moves more than 100 million passengers annually.

Originally published as TPG set to acquire Australia’s largest bus operator in $4bn deal