Knorr-Bremse AG has acquired Alstom’s North American conventional signalling business, marking a significant step in its strategic expansion. This purchase, valued at approximately €630 million, aligns with Alstom’s broader deleveraging plan announced in November 2023.
More Details:
Alstom, global leader in smart and sustainable mobility, announced that it has entered into a binding agreement with Knorr-Bremse AG to sell Alstom’s North American conventional signalling business for a purchase price of around €630 million. This transaction is part of the comprehensive company action plan that Alstom announced on 15 November 2023, aiming at reinforcing its leadership position in the Rail industry.
Alstom will provide the details of its plan to maintain a solid and sustainable investment grade rating and of its €2 billion deleveraging target at full-year results on 8 May 2024. This transaction concerns the conventional part of the North American signalling business, and the perimeter to be sold had revenues of approximately €300 million in FY 2023/24.
Chairman and CEO Stated:
Mr. Henri Poupart-Lafarge, Chairman and Chief Executive Officer said “We are pleased to sign this agreement, which marks an important step in the implementation of our action plan. It is evidence of the work of our North American signalling employees, who have built and advanced this very successful business over the past few years.”
Alstom Future Aspects in North America:
- Alstom will continue to serve the North American signalling market on different segments, notably with Communications Based Train Control (CBTC) and European Train Control System (ETCS) solutions.
- Closing of the transaction is only subject to customary conditions, including regulatory approval, and is expected to take place as soon as Summer 2024.
Conclusion:
With Alstom’s concurrent divestment and Knorr-Bremse’s strategic purchase, the rail industry has undergone a major restructuring that promises to improve both companies’ capacities and areas of competence.
Source: Alstom – Press Release | Image Credit (representational): Alstom
Join us for the upcoming 5th Rail & Metro Technology Conclave with 600+ Top Rail & Metro Industry Leaders on 23rd & 24th July, 2024 in New Delhi, India. Register here and participate in the summit.
