US investment firm KKR has agreed to sell railcar-leasing company Infinity Transportation to Ares Management in a $2.9 billion deal, with the transaction expected to close in the first quarter of 2027, reports London Daily News Desk.
US investment firm KKR will sell railcar-leasing company Infinity Transportation to rival investment firm Ares Management for approximately $2.9 billion, the companies announced on Monday. Based in Atlanta, Georgia, Infinity Transportation leases and manages railcars and intermodal equipment, operating a fleet of around 50,000 railcars serving more than 350 customers across the United States, Canada and Mexico.
The acquisition will expand Ares Management’s investments in the transportation and logistics sector, as demand for resilient supply chains and domestic manufacturing continues to support the industry.
Mike Roth, partner at Ares Infrastructure Equity, said transportation and logistics assets continued to benefit from the reshoring of manufacturing and the growing need for reliable supply chains. He added that Infinity’s assets were well positioned for long-term investment.
Ares plans to support the expansion of Infinity’s fleet following the transaction, which is expected to be completed in the first quarter of 2027, subject to the necessary closing conditions.
The sale marks a significant development for Infinity, which has expanded considerably under KKR’s ownership. According to KKR, the company has increased its book value by 150% since 2021 and grown into one of the largest railcar lessors in the United States.
Railcar-leasing companies provide rail equipment to businesses that need to transport goods without purchasing and maintaining their own fleets. Demand for such services is influenced by industrial activity, freight transportation requirements and investment in supply-chain infrastructure.
Intermodal equipment also plays a role in moving freight between different modes of transport, including rail and road, supporting the movement of goods across North America.
The transaction reflects continued investment in transportation infrastructure by private equity and alternative asset managers, which seek long-term opportunities in assets linked to industrial production and logistics.
KKR and Ares are both major players in alternative investments, including infrastructure and private markets. The acquisition will give Ares a larger presence in rail transportation and provide Infinity with backing to support its future fleet expansion.
Macquarie Capital is acting as financial adviser to KKR, while Citigroup is advising Ares Management on the transaction.
The deal is expected to be completed in early 2027, according to the announcement.
