CIT Group Inc. recently announced it had provided a revolving line of credit to Bauer-Pileco Inc., the United States subsidiary of Bauer AG. Financing was provided by CIT Bank, CIT’s commercial banking subsidiary in the U.S. Terms of the deal were not disclosed.
“The deal had heightened complexity due to its lease structure and its fleet rental nature, coupled with the accounting and legal issues inherent in a multi-national firm’s financing of equipment in multiple countries,” said Thomas L. Jarboe, chief financial officer for Bauer-Pileco. “Closing the transaction required extensive work in Germany and Canada, as well as in the U.S. We look forward to continuing our relationship with CIT.”
Pileco joined the Bauer Group of companies in 2005. The U.S. subsidiary maintains a fleet that includes pile driving equipment, diesel hammers, hydraulic hammers, vibratory hammers and lead systems. This deal will allow Bauer-Pileco to expand on that fleet.
“This transaction will allow Bauer AG’s U.S. subsidiary to acquire manufactured foundation drilling rigs and other related equipment from its parent/manufacturer for use by Bauer customers throughout the U.S. and Canada,” said Vince Belcastro, managing director and group head of CIT Capital Equipment Finance.
Founded in 1790, Bauer AG employs about 9,700 people worldwide and had 2011 revenue of about $1.87 billion.
Bauer-Pileco, which has offices in Houston and Livermore, Calif., maintains a dealer network across the U.S., Canada and Mexico. For more information about Bauer-Pileco, visit www.bauerpileco.com.