CIT Announces Agreement to Sell its European Rail Business

          CIT Announces Agreement to Sell its European Rail Business

Company to divest last remaining overseas business and focus on core
operations

PR Newswire

NEW YORK, June 30, 2017

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. 

CIT logo

"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.

About CIT
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. 

Contacts

CIT MEDIA RELATIONS: 
Gina Proia 
(212) 771-6008  
Gina.Proia@cit.com

CIT INVESTOR RELATIONS: 
Barbara Callahan 
(973) 740-5058  
Barbara.Callahan@cit.com

 

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SOURCE CIT Group Inc.

Website: http://www.cit.com
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