Key Takeaways
- • KKR & Co. has agreed to sell railcar-leasing company Infinity Transportation to Ares Management for about $2.9 billion, according to the Wall Street Journal.
- • KKR owned Infinity for roughly five years and helped the company more than double its book value during that period.
- • Infinity owns about 50,000 railcars and serves more than 350 customers across North America, per KKR.
- • Infinity leases equipment to carmakers, logistics companies, railroad operators, and shippers in agriculture, mining, and chemicals.
- • The deal moves a private-markets infrastructure asset from one major alternative manager to a direct peer, underscoring continued institutional appetite for transportation and equipment leasing assets.
Summary
KKR & Co. has agreed to sell railcar-leasing company Infinity Transportation to peer Ares Management for about $2.9 billion, according to a Wall Street Journal exclusive report. KKR has owned the business for roughly five years and, during that time, helped Infinity more than double its book value.
Atlanta-based Infinity leases railcars and related equipment to end users, including carmakers, logistics companies, railroad operators, and shippers in sectors such as agriculture, mining, and chemicals. KKR said the company owns about 50,000 railcars and serves more than 350 customers across North America. Infinity is also an active buyer in the secondary market for railcars, a activity that allows it to expand its fleet opportunistically.
The transaction represents a sale between two large alternative asset managers, with Ares acquiring a established platform in the equipment-leasing segment. The reported price of about $2.9 billion provides a valuation reference point for North American railcar leasing assets held in private-markets portfolios.
Atlanta-based Infinity leases railcars and related equipment to end users, including carmakers, logistics companies, railroad operators, and shippers in sectors such as agriculture, mining, and chemicals. KKR said the company owns about 50,000 railcars and serves more than 350 customers across North America. Infinity is also an active buyer in the secondary market for railcars, a activity that allows it to expand its fleet opportunistically.
The transaction represents a sale between two large alternative asset managers, with Ares acquiring a established platform in the equipment-leasing segment. The reported price of about $2.9 billion provides a valuation reference point for North American railcar leasing assets held in private-markets portfolios.
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