CIT Group Inc. has completed the sale of its European rail leasing business, NACCO, to German-based VTG Aktiengesellschaft for net proceeds of $1.1 billion based on current exchange rates.

The sale was completed in two separate transactions and included approximately $1.2 billion in assets.

The Paris-based operations and assets, including approximately 11,000 rail cars, were sold to VTG. Meanwhile, the operations and assets in Germany and Luxembourg, which included approximately 4,400 rail cars, were sold to a consortium of buyers consisting of Wascosa Ag and a subsidiary of Aves One AG.

CIT will use part of the proceeds of the sale to optimize its funding profile. The remaining proceeds will be used toward its planned return of an additional $750 million of capital to shareholders, and for general corporate purposes.

Credit Agricole CIB served as financial adviser to CIT and Dechert LLP served as its legal counsel in the NACCO deal.