KKR & Co. (NYSE: KKR) and Ares Management Corporation (NYSE: ARES) announced a definitive agreement under which KKR will sell Infinity Transportation to Ares Infrastructure Equity and Ares Insurance Solutions funds for an enterprise value of approximately $2.9 billion.

The transaction is expected to close in the first quarter of 2027, subject to customary closing conditions and regulatory approvals.

Founded in 2004 and headquartered in Atlanta, Georgia, Infinity owns and manages approximately 50,000 railcars leased to more than 350 lessees across the United States, Canada and Mexico. KKR's wholly owned subsidiary, Global Atlantic, has held an investment in Infinity since 2016.

According to the press release, Infinity's book value increased by 150% since 2021 as the company established a standalone operating platform and expanded its fleet under KKR's ownership.

Macquarie Capital is serving as financial advisor and Simpson Thacher & Bartlett LLP is serving as legal counsel to KKR. Citi is serving as financial advisor and Kirkland & Ellis LLP is serving as legal counsel to Ares.