Tyco Capital, the company that acquired CIT Group last summer, has sold its $700 million RV retail loan portfolio to Salomon Smith Barney.
Tyco Capital is a unit of Tyco International Ltd., an electronic components manufacturer that purchased CIT Group, which was one of the five largest sources of loans to retail purchasers of RVs.
However, Tyco stopped providing RV retail loans effective last June 5.
CIT had left the RV dealer inventory finance business about a year earlier.
Tyco left RV retail lending and sold its RV loan portfolio because the company considers RVs a “non-core business,” according to Dennis Kozlowski, Tyco’s chairman and CEO.
Instead, Tyco Capital will seek “more robust growth opportunities,” Kozlowski said. “With the sale of the RV portfolio, in addition to the other recent portfolio divestitures, we have achieved our stated goal of divesting in excess of $5 billion in the former CIT’s non-strategic assets by the end of the year and to position Tyco Capital for future growth.”