Knorr-Bremse Acquires Alstom’s North American Conventional Signalling Division in $690 Million Deal

Knorr-Bremse Acquires Alstom’s North American Conventional Signalling Division in $690 Million Deal

(IN BRIEF) Alstom has sold its North American conventional signalling business to Knorr-Bremse AG for $690 million as part of a broader €2 billion financial restructuring plan. This sale is aimed at strengthening Alstom’s balance sheet and stabilizing its Investment Grade rating. Despite the divestiture, Alstom will continue to serve the North American market with advanced signalling technologies like CBTC and ETCS. The transaction marks a strategic move for both companies, with Knorr-Bremse expanding its rail signalling capabilities in the region.

(PRESS RELEASE) SAINT-OUEN-SUR-SEINE, 2-Sep-2024 — /EuropaWire/ — Alstom (EPA: ALO), a French multinational rolling stock manufacturer and leader in sustainable and green mobility solutions, announces that Knorr-Bremse AG, a global leader in braking systems and rail vehicle systems, has successfully acquired Alstom’s North American conventional signalling business for approximately $690 million. This acquisition is a significant milestone for Knorr-Bremse as it strengthens its position in the North American market and expands its portfolio in rail signalling technologies.

This strategic divestiture aligns with Alstom’s broader financial restructuring plan, which was unveiled in November 2023. The sale is part of a €2 billion deleveraging effort aimed at reinforcing Alstom’s balance sheet and stabilizing its Investment Grade rating. With the completion of this sale, Alstom has successfully delivered on all components of its action plan.

Despite the sale, Alstom will continue to play a pivotal role in the North American signalling market, focusing on advanced technologies such as Communications-Based Train Control (CBTC) and European Train Control System (ETCS) solutions.

Alstom’s long-standing presence in the U.S. rail industry, with a history spanning over 170 years, includes significant contributions to rail car manufacturing, locomotive repairs, and the provision of signalling solutions. The company remains committed to supporting the U.S. market through high-tech engineering and localized manufacturing.

In the transaction, Alstom was supported by financial advisor Crédit Agricole CIB, legal advisor White & Case LLP, antitrust advisor Cleary Gottlieb Steen & Hamilton LLP, and financial diligence firm Accuracy.

This move marks a significant step for both companies, with Knorr-Bremse enhancing its capabilities in rail signalling, and Alstom continuing to focus on its core strengths while improving its financial standing.

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SOURCE: Alstom