Knorr-Bremse Acquires Alstom's North American Rail Signalling Tech Business

Knorr-Bremse AG, through its subsidiary, Knorr Brake Holding Corporation, has finalized a deal to purchase the rail signalling technology sector of Alstom in North America. The acquired unit is Alstom Signaling North America. This move markets Knorr-Bremse's strategic entry into the North American rail market's control, command, and signalling (CCS) segment.

The agreed purchase price is approximately EUR 630 million, including a significant expected revenue from upcoming projects. Alstom Signaling North America reported revenues of around EUR 300 million and an EBIT margin of 16% for the fiscal year ending March 31, 2024. The acquisition is anticipated to enhance earnings immediately.

Subject to customary closing conditions, the transaction is expected to be completed by the summer of 2024. The funding for this acquisition will be covered by Knorr-Bremse’s current liquidity and debt financing, and it is projected not to impact its credit rating.