In an effort to diversify,
CIT Group Inc.
) announced the acquisition of Nacco SAS - a premier
full-service wagon leasing company headquartered in Paris. The
terms of the deal, however, were kept confidential.
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Nacco owns around 9,500 wagons and offers its services to about
150 customers in 16 countries. The company also operates
subsidiaries in Hamburg, Germany, and Crewe, United Kingdom.
Nacco's wagons include tank cars, flat cars, gondolas and hopper
cars that service the petroleum, chemical and petrochemical
industries, as well as industries related to transportation of
fertilizers, minerals, timber, steel, aggregates and agricultural
The Senior Vice President and General Manager of Locomotives for
CIT Rail, will serve as the President of Nacco. In addition, the
integrated unit will now be branded as Nacco, A CIT Company.
Europe ranks among the leading freight rail markets and CIT
Group's foray into this market will provide an added boost to its
rail leasing platform. Additionally, it will provide an
opportunity for the company to become a premier provider of
global transportation finance solutions.
Additionally, partnering a premier firm like Nacco will provide
CIT Group the opportunity to use the former's expertise and
reputation to tap customers for growing market share in Europe.
This is expected to mitigate the stringent regulations and a weak
economic recovery in the U.S.
CIT group currently carries a Zacks Rank #3 (Hold). Better-ranked
stocks in the same sector include
American Express Company
Financial Engines, Inc.
). All these stocks carry a Zacks Rank #2 (Buy).