Alstom to Sell North American Signal Business to Knorr-Bremse for $671 Million
In a strategic move to address financial challenges stemming from its 2021 acquisition of Bombardier, Alstom has announced the sale of its North American signal business to Knorr-Bremse of Germany for approximately $671 million. The deal, expected to close this summer, is part of Alstom’s plan to sell up to €1 billion in assets to improve cash flow and stock value.
Knorr-Bremse, a Munich-based company known for brake systems, will now expand its presence in the U.S. rail market by becoming a leader in the rail control, command, and signaling segment. The acquisition aligns with Knorr-Bremse’s ‘BOOST 2026’ strategy program and marks a significant step forward in digitalization and electronics in rail infrastructure.
CEO Marc Llistosella expressed enthusiasm about the acquisition, stating, “This acquisition is good for Knorr-Bremse and will drive our profitable growth further.” Dr. Nicolas Lange, the Knorr-Bremse board member overseeing the Rail Vehicle Systems division, emphasized the importance of the CCS market, valued at approximately €20 billion globally.
Alstom CEO Henri Poupart-Lafarge praised the work of the North American signaling employees, whose efforts have led to a successful business generating revenues of around $319.5 million in the fiscal year 2023-24. The sale of this portion of the business will allow Alstom to focus on its core operations and strengthen its financial position.
Overall, the acquisition represents a significant development in the rail industry, positioning Knorr-Bremse as a key player in the North American rail control and signaling market.