PRINT THIS PAGE Lone Star to acquire CIT's Home Lending business for $5.9bn02/07/2008. Source: AltAssets. 
Lone Star Funds, the Dallas-based group of private equity funds, has agreed to acquire the Home Lending business of commercial finance company CIT Group Inc. for $1.5bn in cash and the assumption of $4.4bn of outstanding debt and related liabilities. The deal includes two serving centres in Marlton, New Jersey and Oklahoma City, Oklahoma, which employ approximately 300 people.
In the second quarter of 2008, CIT expects to record an estimated pre-tax loss for the Home Lending division of approximately $2.5bn, according to a statement.
Lone Star closed its most recent fund, Lone Star Fund V, in September 2004 on $5bn.
Last year, Lone Star agreed to sell its 51.02 per cent stake in financial services provider Korean Exchange Bank to HSBC for $6.3bn.
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