Ares to Buy KKR's Railcar Leasing Unit Infinity Transportation for $2.9B
ARES sits 17% above its 52-week low of $95.8.
Summary
Ares is buying Infinity Transportation, KKR's railcar-leasing business, for $2.9 billion, per the WSJ. The deal puts a sizable chunk of Ares' capital into hard-asset transportation leasing, a step beyond the credit and real estate deployment that has driven its recent activity. KKR is the seller and gets liquidity out of a niche asset; Ares is the buyer and carries the execution and integration risk. The price is material for Ares relative to its recent deal flow, though the company has been deploying aggressively — over €1 billion into Plenitude, an 80% stake in a 384 MW solar portfolio, and a $2.4 billion logistics JV with PSP in the past month alone. Terms beyond the headline price, including financing and expected close, are not yet disclosed.
At the time of this announcement, ARES was trading at $112.00 on NYSE in the Finance sector, with a market capitalization of approximately $25.1B. The 52-week trading range was $95.80 to $181.19. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.