VTG shells out nearly €1bn for NACCO

VTG is to buy CIT Rail Holdings (Europe) SAS and the associated NACCO Group, the fourth largest private rental company of rail freight cars in Europe.

With this transaction, VTG is expanding its position as one of the largest private railcar leasing companies in Europe with a fleet of more than 94,000 wagons. The newly acquired fleet will also diversify the VTG portfolio.

CIT is headquartered in Paris and is a wholly-owned indirect subsidiary of CIT Group Inc. It currently has about 14,000 railcars in Europe with the NACCO Group. The main markets are in France, Germany, Austria and Eastern Europe. The fleet includes a well-balanced portfolio of different freight cars from all major sectors.

VTG expects a purchase price of approximately €780 million plus all investments made by NACCO in rolling stock between 1 January 2017 and the closing date which could sum up to €140 million.

The deal is expected to be closed in the fourth quarter 2017.