KKR agreed to sell Infinity Transportation to Ares-managed funds for approximately $2.9 billion.
Why it matters: The deal would move a railcar and intermodal-equipment leasing business from KKR ownership to Ares-managed infrastructure and insurance capital. It also gives investors a transaction involving a fleet of about 50,000 railcars and more than 350 customers.
- <a href="https://www.businesswire.com/news/home/20261019755280/en/KKR-to-Sell-Infinity-Transportation-to-Ares-for-%242.9-Billion">Infinity owns and manages approximately 50,000 railcars leased to more than 350 customers.</a>
- <a href="https://www.businesswire.com/news/home/20261019755280/en/KKR-to-Sell-Infinity-Transportation-to-Ares-for-%242.9-Billion">The Atlanta-based company serves customers across the United States, Canada and Mexico.</a>
- The transaction is subject to regulatory approvals and is expected to close in the first quarter of 2027, <a href="https://www.reuters.com/business/kkr-sell-railcar-leasing-company-infinity-ares-29-billion-2026-10-19/">Reuters reported</a>.
- <a href="https://www.businesswire.com/news/home/20261019755280/en/KKR-to-Sell-Infinity-Transportation-to-Ares-for-%242.9-Billion">KKR and Ares said Infinity's book value increased 150% from 2021.</a>
KKR & Co. agreed to sell Infinity Transportation to funds managed by Ares Infrastructure Equity and Ares Insurance Solutions for an enterprise value of approximately $2.9 billion, according to the announcement.
Infinity provides railcar and intermodal-equipment leasing, including net leases, full-service leases and structured financing solutions. The announcement says its fleet serves more than 350 unique lessees across the United States, Canada and Mexico.
The transaction is not yet complete. It requires customary closing conditions and regulatory approvals and is expected to close in the first quarter of 2027, Reuters reported.
The announcement says Global Atlantic, KKR's wholly owned subsidiary, has invested in Infinity since 2016. KKR and Ares also said Infinity established a standalone operating platform and expanded its fleet with KKR's support since 2021.
KKR and Ares said Infinity's book value increased 150% from 2021. That is a claim by the transaction parties about Infinity's book value, not an independently verified metric in the materials provided.
Ares said it plans to support Infinity's management team, fleet growth, customer relationships and potential acquisitions. “Transportation and logistics assets continue benefiting from the reshoring of manufacturing,” said Mike Roth, a partner at Ares Infrastructure Equity.
The parties disclosed enterprise value, but not Infinity's revenue, earnings, debt, equity value or transaction multiple.
By the numbers
- $2.9 billion - approximate enterprise value of the proposed transaction, according to <a href="https://www.businesswire.com/news/home/20261019755280/en/KKR-to-Sell-Infinity-Transportation-to-Ares-for-%242.9-Billion">the announcement</a>
- 50,000 railcars - approximate fleet owned and managed by Infinity, according to <a href="https://www.businesswire.com/news/home/20261019755280/en/KKR-to-Sell-Infinity-Transportation-to-Ares-for-%242.9-Billion">the announcement</a>
- 150% - increase in Infinity's book value from 2021, as claimed by KKR and Ares
Yes, but: The transaction remains subject to customary closing conditions and regulatory approvals, and the parties did not disclose revenue, earnings, debt, equity value or a transaction multiple.
What's next: The deal is expected to close in the first quarter of 2027, subject to regulatory approvals and other closing conditions.