KKR to Sell Infinity Transportation to Ares for USD 2.9 Bn
KKR to sell railcar lessor Infinity Transportation to Ares for USD 2.9 billion; deal expected to close in Q1 2027.
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KKR has agreed to sell Infinity Transportation, a railcar and intermodal equipment lessor, to Ares Infrastructure Equity and Ares Insurance Solutions funds for an enterprise value of about USD 2.9 billion. The deal is subject to customary closing conditions and regulatory approvals and is expected to close in the first quarter of 2027.
KKR’s subsidiary Global Atlantic has invested in the company since 2016. Since 2021, with KKR’s support, Infinity set up a standalone operating platform and expanded its fleet, increasing book value by 150% and becoming one of the largest railcar lessors in the US.
“We appreciate KKR’s partnership and support, which enabled us to invest in the team, expand our fleet and build Infinity into the industry leader it is today,” said Jeff Edelman, President and CEO, Infinity Transportation.
After closing, Ares plans to use its infrastructure investing capabilities and capital to support Infinity’s management team, fleet growth and customer relationships across North America. It also intends to pursue new acquisition opportunities.
Macquarie Capital is financial advisor and Simpson Thacher & Bartlett LLP legal counsel to KKR. Citi is financial advisor and Kirkland & Ellis LLP legal counsel to Ares.
“Transportation and logistics assets continue benefiting from the reshoring of manufacturing, increased investment in domestic industrial capacity and growing need for more resilient supply chains,” said Mike Roth, Partner, Ares Infrastructure Equity, and Anup Agarwal, Head and Chief Investment Officer, Ares Insurance Solutions.
KKR has agreed to sell Infinity Transportation, a railcar and intermodal equipment lessor, to Ares Infrastructure Equity and Ares Insurance Solutions funds for an enterprise value of about USD 2.9 billion. The deal is subject to customary closing conditions and regulatory approvals and is expected to close in the first quarter of 2027.
KKR’s subsidiary Global Atlantic has invested in the company since 2016. Since 2021, with KKR’s support, Infinity set up a standalone operating platform and expanded its fleet, increasing book value by 150% and becoming one of the largest railcar lessors in the US.
“We appreciate KKR’s partnership and support, which enabled us to invest in the team, expand our fleet and build Infinity into the industry leader it is today,” said Jeff Edelman, President and CEO, Infinity Transportation.
After closing, Ares plans to use its infrastructure investing capabilities and capital to support Infinity’s management team, fleet growth and customer relationships across North America. It also intends to pursue new acquisition opportunities.
Macquarie Capital is financial advisor and Simpson Thacher & Bartlett LLP legal counsel to KKR. Citi is financial advisor and Kirkland & Ellis LLP legal counsel to Ares.
“Transportation and logistics assets continue benefiting from the reshoring of manufacturing, increased investment in domestic industrial capacity and growing need for more resilient supply chains,” said Mike Roth, Partner, Ares Infrastructure Equity, and Anup Agarwal, Head and Chief Investment Officer, Ares Insurance Solutions.
