Laurentian to Buy CIT Canada Financing Unit, Add 140 Employeesby
Laurentian Bank of Canada agreed to buy CIT Group Inc.’s Canadian equipment and corporate financing activities, adding a C$1 billion ($770 million) portfolio to the Montreal-based lender.
The purchase will “modestly" add to per-share earnings in 2017 and will add 4 percent to earnings by 2018, the buyer said Wednesday in a statement. Laurentian will partly finance the purchase by selling C$135 million of subscription receipts. Terms weren’t disclosed for the acquisition, which is expected to close in its last fiscal quarter of this year.
"By providing a more complete line of products and services, a larger pool of customers and an enhanced sales force deployment, this agreement will contribute directly to achieve our growth agenda," said Francois Desjardins, chief executive officer at Laurentian Bank, said in the statement.
CIT Canada, a unit of New York-based CIT Group, operates primarily in the equipment and corporate finance sectors out of Burlington, Ontario. About 140 CIT employees will join Laurentian after the deal closes.