CIT Announces Sale of Canadian Equipment Finance and Corporate Finance Businesses to Laurentian Bank of Canada
June 29 2016 - 4:35PM
Business Wire
CIT Group Inc. (NYSE:CIT), cit.com, a leading provider of
commercial lending and leasing services, today announced that it
has reached a definitive agreement to sell its Canadian equipment
finance and corporate finance businesses (“CIT Canada”), with more
than US $700 million in assets, to Laurentian Bank of Canada. In
addition, approximately 140 employees of CIT Canada will join the
Laurentian Bank team.
“This transaction represents another milestone for us as we
continue to exit our international businesses and focus on growing
our core commercial franchises,” said Ellen R. Alemany, Chairwoman
and Chief Executive Officer. “We remain focused on our strategy to
become a national middle market bank and serve our customers with
an integrated set of financing and deposit products.”
The transaction is expected to close in the fourth quarter of
2016, subject to customary closing conditions, including all
applicable regulatory notifications and approvals. CIT Canada and
Laurentian Bank of Canada will continue to operate separately until
the closing of the transaction.
Credit Suisse Securities (USA) LLC served as exclusive financial
advisor to CIT Group for this transaction.
Forward-Looking Statements
This press release contains forward-looking statements
within the meaning of applicable federal securities laws that are
based upon our current expectations and assumptions concerning
future events, which are subject to a number of risks and
uncertainties that could cause actual results to differ materially
from those anticipated. The words “expect,” “anticipate,”
“estimate,” “forecast,” “initiative,” “objective,” “plan,” “goal,”
“project,” “outlook,” “priorities,” “target,” “intend,” “evaluate,”
“pursue,” “commence,” “seek,” “may,” “would,” “could,” “should,”
“believe,” “potential,” “continue,” or the negative of any of those
words or similar expressions is intended to identify
forward-looking statements. All statements contained in this press
release, other than statements of historical fact, including
without limitation, statements about our plans, strategies,
prospects and expectations regarding future events and our
financial performance, are forward-looking statements that involve
certain risks and uncertainties. While these statements represent
our current judgment on what the future may hold, and we believe
these judgments are reasonable, these statements are not guarantees
of any events or financial results, and our actual results may
differ materially. Important factors that could cause our actual
results to be materially different from our expectations include,
among others, the risk that CIT is unsuccessful in implementing its
strategy and business plan, the risk that CIT is unable to react to
and address key business and regulatory issues, the risk that CIT
is unable to achieve the projected revenue growth from its new
business initiatives or the projected expense reductions from
efficiency improvements, the risk that CIT is delayed in
implementing its branch strategy, and the risk that CIT becomes
subject to liquidity constraints and higher funding costs. We
describe these and other risks that could affect our results in
Item 1A, “Risk Factors,” of our latest Annual Report on Form 10-K
for the year ended December 31, 2015, which was filed with the
Securities and Exchange Commission. Accordingly, you should not
place undue reliance on the forward-looking statements contained in
this press release. These forward-looking statements speak only as
of the date on which the statements were made. CIT undertakes no
obligation to update publicly or otherwise revise any
forward-looking statements, except where expressly required by
law.
About CIT
Founded in 1908, CIT (NYSE: CIT) is a financial holding company
with more than $65 billion in assets. 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. It provides financing, leasing and advisory services
principally to middle market companies across a wide variety of
industries primarily in North America, and equipment financing and
leasing solutions to the transportation sector. 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. cit.com
About Laurentian Bank
Laurentian Bank of Canada is a banking institution whose
activities extend across Canada. The Bank serves one and a half
million clients throughout the country and employs more than 3,600
people whose talent and dedication have made it a major player in
numerous market segments. The Bank has more than $41 billion in
balance sheet assets and $42 billion in assets under
administration. Laurentian Bank distinguishes itself through the
excellence and simplicity of its services. The Bank caters to the
needs of retail clients via its branch network.
The Bank has also earned a solid reputation among small and
medium-sized enterprises and real estate developers thanks to its
specialized teams across Canada, namely in Ontario, Québec,
Alberta, British Columbia and Nova Scotia. For their part, B2B Bank
is a Canadian leader in providing banking and investment products
and services to financial advisors and brokers, while the expertise
and effectiveness of Laurentian Bank Securities' integrated
brokerage services are known nationwide. laurentianbank.ca
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version on businesswire.com: http://www.businesswire.com/news/home/20160629006401/en/
CIT MEDIA RELATIONS:Matt Klein, 973-597-2020Director,
Media RelationsMatt.Klein@cit.comorCIT INVESTOR
RELATIONS:Barbara Callahan, 973-740-5058Senior Vice
PresidentBarbara.Callahan@cit.com
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