KKR Offloads Railcar Leasing Unit Infinity to Ares for $2.9B
KKR is trading near its 52-week low of $82.67 (4.7% above the low).
Summary
KKR agreed to sell railcar-leasing subsidiary Infinity Transportation to Ares Management for about $2.9 billion, a clean exit from a hard-asset leasing business. The deal is modest next to KKR's $796 billion in assets under management, but it fits the firm's pattern of monetizing portfolio holdings — Q2 featured record asset sales and a blowout $1.63 adjusted EPS. For Ares, the buyer, it adds a large railcar fleet to its expanding real-asset and infrastructure credit platform. Terms beyond the headline price — cash versus stock, expected closing, and gain or loss versus carrying value — were not disclosed. KKR reports next on its Q3 call, where management will likely be asked about proceeds deployment and the pace of further exits.
At the time of this announcement, KKR was trading at $86.52 on NYSE in the Finance sector, with a market capitalization of approximately $77.4B. The 52-week trading range was $82.67 to $144.84. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Reuters.