NORTH AMERICA: Knorr-Bremse has completed its $690m acquisition of the conventional rail signalling business of Alstom Signaling North America, with 800 employees in six locations becoming employees of KB Signaling, a standalone business.
The completion announced on September 2 follows a binding agreement signed on April 19. It completes Alstom’s €2bn deleveraging plan announced in November 2023.
Alstom will continue to offer communication-based train control and ETCS products in the North American market.
Knorr-Bremse CEO Marc Llistosella said the acquired business ‘is both market-leading and high-margin’, and ’contributes to another strategic objective: to further enhance the Rail side of Knorr-Bremse’s business activities’.
In the year to March 31 2024, Alstom Signaling North America generated around €300m in revenues with an EBIT margin of around 16%.
In the medium term Knorr-Bremse aims to establish itself as an international Tier 1 systems and platform partner for train manufacturers, operators and infrastructure and signalling technology suppliers. Its existing business activities in the European signalling market are to be folded into the Signaling business unit.
Knorr-Bremse said it sees significant global opportunities to develop the portfolio to offer scalable products for North American, European and Asian markets, including with smart interaction between trackside and onboard braking technologies, and for strategic acquisitions.
Crédit Agricole CIB acted as financial adviser to Alstom, White & Case as legal adviser, Cleary Gottlieb Steen & Hamilton as antitrust adviser and Accuracy supported due diligence.
