KKR strikes second deal from $9.3bn Asian fund

The private equity giant has bought a controlling stake in Melbourne-based food and beverage operator Dixon Hospitality following its April offer to acquire Hitachi Kokusai Electric.

KKR has struck its second deal from its $9.3 billion pan-Asian fund, acquiring a majority stake in Australian company Dixon Hospitality. Financial terms of the transaction were not disclosed.

The firm’s first deal from the fund was the acquisition of Japan’s Hitachi Kokusai Electric for a $2.3 billion in April. The vehicle, Asian Fund III, closed on over $9 billion against a $7 billion target earlier this month.

Melbourne-based Dixon Hospitality operates and manages more than 40 pubs, bars and restaurants across Australia including the Beer Deluxe chain and 12-Micron.

Commenting on the transaction, Gareth Woodbridge, principal at KKR Australia, said: “We are impressed by the strength of Dixon Hospitality’s team, business model and operations across its diverse portfolio of food and beverage venues. This is an exciting time for Australia’s hospitality sector, and KKR is committed to supporting the business to achieve its long-term growth ambitions.”

KKR, which set up its Sydney office in 2007, has invested more than A$3 billion across private equity, credit, energy and resources and real estate in Australia. Among investments in its Australia portfolio include consumer finance company Latitude Financial Services, sandalwood producer Santanol and tomato producer Sundrop Farms.