KKR to sell railcar-leasing company Infinity to Ares for $2.9 billion (updated)

KKR & Co

Mon 12:03

Adds details on transaction in paragraphs 3-6
Oct 19 (Reuters) - US investment firm KKR KKR.N said on Monday it will sell railcar-leasing company Infinity Transportation to peer Ares Management ARES.N for about $2.9 billion.
Atlanta-based Infinity Transportation is a railcar and intermodal equipment lessor that owns and manages about 50,000 railcars leased to more than 350 customers across the United States, Canada and Mexico.
"Transportation and logistics assets continue benefiting from the reshoring of manufacturing" and the growing need for resilient supply chains, said Mike Roth, partner at Ares Infrastructure Equity, adding that Infinity's assets are "well-suited for long-term investment."    
Roth also said the deal would expand Ares' transportation and logistics investments, with the firm planning to support Infinity's fleet growth following the transaction's expected close in the first quarter of 2027.
Infinity has increased its book value by 150% and grown into one of the largest railcar lessors in the United States since 2021 under KKR's ownership, the private equity giant said.
Macquarie Capital is serving as financial advisor to KKR and Citi is serving as financial advisor to Ares.

 (Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Devika Syamnath)
 ((Aatreyee.Dasgupta@thomsonreuters.com;))