Alstom has completed the $690m sale of its North American conventional signalling business to Knorr-Bremse in the final step of its 2023 company action plan to reinforce its balance sheet.
Completion of the sale comes after an initial binding agreement was signed in April 2024 and marks Knorr-Bremse's first entry into the continent’s signalling market as part of its BOOST 2026 strategy.
Knorr-Bremse CEO Marc Llistosella said: “Our entry into the North American signalling market is an outstanding example of Knorr-Bremse’s drive to create even greater value as we further develop our portfolio by entering new, highly promising areas of business.
“The acquisition also contributes to another strategic objective: to further enhance the Rail side of Knorr-Bremse’s business activities.”
The acquisition includes all products, services and manufacturing operations of Alstom Signalling North America and the transfer of 800 employees to KB Signalling, Knorr-Bremse's new signalling business unit.
The German company said the deal meant the new business was “already well positioned” in the signalling market and would further expand this position by folding in Knorr-Bremse's existing activities in the European market and offering new Control, Command and Signalling solutions.
Nicolas Lange, an executive board member with responsibility for Knorr-Bremse's rail division, said entering the North American market was a “logical step” in the company’s growth plans.
He said: “The signalling business is suitably profitable, enjoys a high share of the service segment as a long-term revenue driver, and offers major opportunities for further development – for example in terms of digitalization, internationalization and market expansion.”
While Alstom has fully exited its former business, the company said it will continue to operate in some segments of the North American signalling market around Communications-Based Train Control (CBTC) and European Train Control System (ETCS) technology.
The sale marks the final step in its €2bn ($2.2bn) action plan revealed in November 2023, which also included the sale of Russian manufacturer TMH, issuance of €750m in hybrid bonds, and a capital increase with preferential subscription rights of around €1bn.
