KKR agrees to sell Infinity Transportation to Ares
KKR and Ares Management Corporation have announced a definitive agreement under which KKR will sell Infinity Transportation, a North American railcar and intermodal equipment leasing company, to funds managed by Ares Infrastructure Equity and Ares Insurance Solutions.
The transaction values Infinity at approximately US$2.9 billion on an enterprise value basis and is expected to close during the first quarter of 2027, subject to customary closing conditions and regulatory approvals.
Founded in 2004, Infinity owns and manages approximately 50,000 railcars leased to more than 350 customers across the United States, Canada and Mexico.
Infinity expands its position in railcar leasing
Infinity provides railcar and intermodal equipment leasing services to customers operating across North America’s transportation and logistics networks.
KKR’s wholly owned subsidiary Global Atlantic has invested in Infinity since 2016.
With KKR’s support, Infinity established a standalone operating platform in 2021 and expanded its fleet and customer relationships.
During this period, the company’s book value increased by approximately 150%, reflecting the growth of its leasing platform.
Daniel Pietrzak, Partner and Head of Asset-Based Finance at KKR, said the transaction demonstrates the value created through long-term investment and the development of specialised financing platforms.
Ares targets further fleet growth
Following completion of the acquisition, Ares intends to support Infinity’s existing management team and pursue further expansion of its railcar leasing business.
The investment firm plans to use its infrastructure investment capabilities and access to capital to support fleet growth, strengthen customer relationships and evaluate additional acquisition opportunities.
Mike Roth, Partner at Ares Infrastructure Equity, and Anup Agarwal, Head and Chief Investment Officer of Ares Insurance Solutions, highlighted the importance of rail transportation and logistics assets in supporting North American supply chains.
They also pointed to manufacturing reshoring, investment in domestic industrial capacity and demand for more resilient logistics networks as factors supporting the sector’s long-term outlook.
Infinity President and Chief Executive Officer Jeff Edelman said the company looks forward to continuing its development with Ares following its period of ownership under KKR.
Transaction expected to close in 2027
Macquarie Capital is acting as financial advisor to KKR, with Simpson Thacher & Bartlett LLP serving as legal counsel.
Citi is advising Ares, while Kirkland & Ellis LLP is providing legal counsel.
The transaction remains subject to regulatory approvals and other customary closing conditions.
Until completion, Infinity remains under its existing ownership structure. The announced US$2.9 billion represents enterprise value rather than a disclosed cash payment to KKR.
