Investment firm KKR & Co. Inc. and Ares Management Corporation have reached a definitive agreement for the sale of Infinity Transportation. Under the deal, Ares Infrastructure Equity and Ares Insurance Solutions funds will acquire the railcar and intermodal leasing platform for roughly $2.9 billion.

Subject to regulatory clearances and customary closing conditions, the transaction is expected to complete in the first quarter of 2027.

Established in 2004, Infinity manages a fleet of approximately 50,000 railcars serving more than 350 clients across the United States, Canada and Mexico. KKR subsidiary Global Atlantic first invested in the business in 2016. Since 2021, KKR supported Infinity in forming an independent operating platform, expanding its fleet and increasing its book value by 150 per cent.

Ares plans to use its infrastructure capital to support Infinity’s leadership team and expand its fleet across North America.

Daniel Pietrzak, Partner and Head of ABF at KKR, said: “Infinity is a great example of KKR’s ability to scale ABF platforms into industry leaders and accelerate their long-term growth. 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, said: “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, said: “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 and Simpson Thacher & Bartlett LLP advised KKR, while Citi and Kirkland & Ellis LLP acted for Ares.