CIT acquires European rail lessor Nacco SAS

Tyco International spinoff CIT Group Inc, a global leader in transportation finance, today said it has acquired 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.

CIT has appointed Dan DiStefano, senior vice president and general manager, locomotives for CIT Rail, as president of the company, which will market itself as Nacco, a CIT group company.

CIT did not disclose the terms of the transaction, its first investment in a rail franchise in Europe, which hosts among the largest rail freight markets.

''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 utilise our best-in-class leasing capabilities throughout Europe.''

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 fertilisers, minerals, timber, steel, aggregates and agricultural products.

Nacco, which is based in Paris, France, has subsidiaries in Hamburg, Germany, and Crewe in the United Kingdom.

''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,'' said DiStefano.

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

Founded in 1972, Nacco is a subsidiary of CIT Rail, the third largest rail lessor in the world and a unit of financial holding group CIT.

CIT Rail owns and finances approximately 120,000 railcars and 400 locomotives and serves more than 650 customers in the bulk freight transportation marketplace and supports the North American and European transportation system by working with freight shippers.