CIT Group reached a definitive agreement to sell NACCO, the European rail leasing business, to German-based VTG Aktiengesellschaft (VTG) for a purchase price of €780 million ($890 million), plus all investments in freight cars between January 1, 2017 and the closing date, which could be up to €140 million ($160 million).

The agreement includes the operations and assets of the Paris-based subsidiary, which includes approximately 14,000 rail freight cars. The transaction is expected to close in Q4/17 following customary closing conditions.

“This transaction represents another step in our evolution to simplify the company and focus on our core businesses,” said Chairwoman and Chief Executive Officer Ellen R. Alemany. “As part of our transformation, CIT has been divesting its international operations and centering on its core commercial banking franchises, which are largely domestic. We are pleased to have reached an agreement with a strategic European company that understands the strengths in the NACCO franchise as a market leader in the pan-European rail industry.”

NACCO, headquartered in Paris, is CIT’s last remaining ongoing business outside of North America. The transaction does not affect CIT’s rail business in the U.S., Canada or Mexico, and the company remains committed to these businesses and its customers.