You are using an outdated browser. Please upgrade your browser to use this site.

CIT Acquires European Rail Lessor Nacco SAS
Acquisition Represents CIT’s First Investment in a European Rail Franchise
Monday, February 3, 2014 02:00 AM
Europe has one of the largest freight rail markets in the world and this acquisition supports our efforts to grow our rail leasing business and to be the premier provider of global transportation finance solutions

NEW YORK & PARIS--(BUSINESS WIRE)--CIT Group Inc. (NYSE:CIT), a global leader in transportation finance, today announced the acquisition of Paris-based Nacco SAS (Nacco), one of the largest independent full service railcar lessors in Europe. Nacco owns more than 9,500 railcars and services over 150 customers in 16 countries. Dan DiStefano, Senior Vice President and General Manager, Locomotives for CIT Rail, was appointed President of the company, which will market itself as Nacco, A CIT Company. Terms of the transaction were not disclosed.

“Europe has one of the largest freight rail markets in the world and this acquisition supports our efforts to grow our rail leasing business and to be the premier provider of global transportation finance solutions,” said Jeff Knittel, President of CIT Transportation & International Finance. “George Cashman, President of CIT Rail, and his team have been studying the European market for a number of years and we are very pleased with this acquisition. It enables us to expand our operating platform outside of North America and offers us a foundation as we look to utilize our best-in-class leasing capabilities throughout Europe.”

Mr. DiStefano said, “Nacco is an industry leader that is known for its strong customer relationships. It has built a reputation based on its expertise in the railcar leasing business, a deep understanding of the European market and the ability to meet the needs of its customers. We remain committed to providing Nacco customers with the quality service they have come to expect and will look to build upon its exceptional service and reputation in the marketplace.”

Nacco’s railcar portfolio consists of tank cars, flat cars, gondolas and hopper cars that service major shippers in the petroleum, chemical and petrochemical industries, as well as those moving fertilizers, minerals, timber, steel, aggregates and agricultural products. Nacco is headquartered in Paris, France, and has subsidiaries in Hamburg, Germany, and Crewe, United Kingdom.

Deutsche Bank Securities Inc. acted as financial advisor to CIT on this transaction.

EDITOR’S NOTE:

View CIT’s corporate overview video (cit.com/corporatevideo), which showcases our support of the small business, middle market and transportation sectors. Follow us on TwitterLinkedInYouTube and Facebook. Individuals interested in receiving corporate news releases can register at cit.com/newsalerts or subscribe to the RSS feed at cit.com/rss

About Nacco, A CIT Company

Founded in 1972, Nacco, A CIT Company, is a subsidiary of CIT Rail, the third largest rail lessor in the world. Headquartered in Paris with a network of subsidiaries and exclusive agents across Europe, Nacco, A CIT Company, serves more than 150 customers in 16 countries and maintains a rail fleet of more than 9,500 railcars. naccorail.com

About CIT Rail

CIT Rail owns and finances approximately 120,000 railcars and 400 locomotives and serves more than 650 customers. It provides financial solutions to the bulk freight transportation marketplace and supports the North American and European transportation system by working with freight shippers, receivers and carriers to customize financial solutions for each customer’s individual needs. As a full service lessor and owner of one of the youngest, most diversified fleets of rail assets in North America and Europe, CIT Rail brings unparalleled asset management expertise and commitment to the transportation sector. citrail.com

About CIT

Founded in 1908, CIT (NYSE: CIT) is a financial holding company with more than $35 billion in financing and leasing assets. It provides financing, leasing and advisory services to its clients and their customers across more than 30 industries. CIT maintains leadership positions in middle market lendingfactoringretail and equipment finance, as well as aerospaceequipment and rail leasing. CIT operates CIT Bank (Member FDIC), its primary bank subsidiary, which, through its Internet bank BankOnCIT.com, offers a suite of savings options designed to help customers achieve a range of financial goals. cit.com

 

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of applicable federal securities laws that are based upon our current expectations and assumptions concerning future events, which are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. The words “expect,” “anticipate,” “estimate,” “forecast,” “initiative,” “objective,” “plan,” “goal,” “project,” “outlook,” “priorities,” “target,” “intend,” “evaluate,” “pursue,” “commence,” “seek,” “may,” “would,” “could,” “should,” “believe,” “potential,” “continue,” or the negative of any of those words or similar expressions is intended to identify forward-looking statements. All statements contained in this press release, other than statements of historical fact, including without limitation, statements about our plans, strategies, prospects and expectations regarding future events and our financial performance, are forward-looking statements that involve certain risks and uncertainties. While these statements represent our current judgment on what the future may hold, and we believe these judgments are reasonable, these statements are not guarantees of any events or financial results, and our actual results may differ materially. Important factors that could cause our actual results to be materially different from our expectations include, among others, the risk that CIT is unsuccessful in implementing its strategy and business plan, the risk that CIT is unable to react to and address key business and regulatory issues, the risk that CIT is unable to achieve the projected revenue growth from its new business initiatives or the projected expense reductions from efficiency improvements, the risk that CIT is delayed in implementing its branch strategy, and the risk that CIT becomes subject to liquidity constraints and higher funding costs. Further, there is a risk that the valuations resulting from our fresh start accounting analysis, which are inherently uncertain, will differ significantly from the actual values realized, due to the complexity of the valuation process, the degree of judgment required, and changes in market conditions and economic environment. We describe these and other risks that could affect our results in Item 1A, “Risk Factors,” of our latest Annual Report on Form 10-K for the year ended December 31, 2012, which was filed with the Securities and Exchange Commission. Accordingly, you should not place undue reliance on the forward-looking statements contained in this press release. These forward-looking statements speak only as of the date on which the statements were made. CIT undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except where expressly required by law.

###

Contact:

CIT MEDIA RELATIONS:
C. Curtis Ritter, 973-740-5390
Director of Corporate Communications
Curt.Ritter@cit.com
or
Matt Klein, 973-597-2020
VP, Media Relations
Matt.Klein@cit.com
or
CIT INVESTOR RELATIONS:
Barbara Callahan, 973-740-5058
Senior Vice President
Barbara.Callahan@cit.com