KKR and Ares Management entered a definitive agreement under which KKR will sell Infinity Transportation, a scaled, full-service railcar and intermodal equipment lessor, to Ares Infrastructure Equity and Ares Insurance Solutions funds for an enterprise value of approximately $2.9 billion. The transaction is subject to customary closing conditions and regulatory approvals and is expected to close in Q1/27.
Following the close of the transaction, Ares intends to leverage its extensive infrastructure investing capabilities and scaled capital to support Infinity’s experienced management team, continued fleet growth and deep customer relationships across North America.
“Infinity is a great example of KKR’s ability to scale ABF platforms into industry leaders and accelerate their long-term growth,” Daniel Pietrzak, partner and head of ABF at KKR, said. “This transaction demonstrates the value that can be created when you combine long-term patient capital with strong partnership and deep expertise. We are proud of what we have built together over the past decade and are confident that Ares will be an exceptional partner to Infinity going forward.”
Jeff Edelman, president and CEO of Infinity, added, “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. We’re proud of what we’ve achieved to date and are excited to begin a new chapter with Ares, whose scale and experience will support our continued growth.”
Mike Roth, partner in Ares Infrastructure Equity, and Anup Agarwal, head and chief investment officer of Ares Insurance Solutions, jointly stated, “Infinity’s railcar portfolio is a critical component of the U.S. transportation and logistics supply chain, and we are pleased to build on our expanding activity in the sector through this transaction. 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. Alongside this strong underlying demand, Infinity’s high-quality, long-lived assets are well suited for long-term investment. We look forward to partnering with Jeff and his team to support continued fleet growth, deepen customer relationships and pursue new acquisition opportunities.”
Macquarie Capital is serving as financial advisor and Simpson Thacher & Bartlett is serving as legal counsel to KKR. Citi is serving as financial advisor and Kirkland & Ellis is serving as legal counsel to Ares.
