Dan DiStefano, senior vice president and general manager, locomotives for CIT Rail, has been appointed president of the company, which will market itself as Nacco, A CIT Company. Terms of the transaction were not disclosed.

Jeff Knittel, president of CIT Transportation & International Finance said: “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.

“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.”

DiStefano added: “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, UK.

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

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.

The news comes shortly after CIT reported net income of $130m for Q4 2013, compared to net income of $207m for Q4 2012. Net income for the year ended December 31, 2013 was $676m compared to a net loss of $592m which included $1.5bn of debt redemption charges, for the year ended December 31, 2012.

John Thain, chairman and chief executive officer explained: “In 2013, we returned CIT to profitability, grew CIT Bank and our commercial assets, while rationalizing our global platforms and returning capital to shareholders,

"We remain focused on enhancing the value of our franchise as we put our knowledge to work to meet the lending, leasing and advisory needs of our small business, middle market and transportation clients.”