NEW YORK, June 30, 2017 /PRNewswire/ -- CIT Group Inc. (NYSE: CIT) today announced that it reached a definitive agreement to sell NACCO, the European rail leasing business, to German-based VTG Aktiengesellschaft (VTG) for a purchase price of EUR 780 million, or $890 million USD based on current exchange rates, plus all investments in freight cars between Jan. 1, 2017 and the closing date, which could be up to EUR 140 million or $160 million USD. The agreement includes the operations and assets of the Paris-based subsidiary, which includes approximately 14,000 rail freight cars. The transaction is expected to close in the fourth quarter of 2017 following customary closing conditions.
"This transaction represents another step in our evolution to simplify the company and focus on our core businesses," said Chairwoman and Chief Executive Officer Ellen R. Alemany. "As part of our transformation, CIT has been divesting its international operations and centering on its core commercial banking franchises, which are largely domestic."
Alemany continued, "We are pleased to have reached an agreement with a strategic European company that understands the strengths in the NACCO franchise as a market leader in the pan-European rail industry."
NACCO, headquartered in Paris, is CIT's last remaining ongoing business outside of North America. The transaction does not affect CIT's Rail business in the U.S., Canada or Mexico, and the company remains committed to these businesses and its customers.
Founded in 1908, CIT (NYSE: CIT) is a financial holding company with $63 billion in assets as of March 31, 2017. Its principal bank subsidiary, CIT Bank, N.A. (Member FDIC, Equal Housing Lender), has more than $30 billion of deposits and more than $40 billion of assets. CIT provides financing, leasing, and advisory services principally to middle-market companies and small businesses across a wide variety of industries. It also offers products and services to consumers through its Internet bank franchise and a network of retail branches in Southern California, operating as OneWest Bank, a division of CIT Bank, N.A. For more information visit cit.com.
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SOURCE CIT Group Inc.