Alstom has agreed to sell its North American conventional signaling business to Knorr-Bremse AG for approximately $671 million. This sale is a significant step in Alstom’s comprehensive company action plan that was announced on November 15, 2023, according to Alstom officials in a press release. They plan to share more details about how they will maintain a strong and sustainable investment grade rating and achieve their $2.1 billion deleveraging target on May 8.
The transaction specifically involves the conventional portion of Alstom’s North American signaling business, which brought in around $320 million in revenue during the fiscal year 2023. Despite this sale, Alstom will continue to operate in other segments of the North American signaling market, such as communications-based train control and European train control systems, as stated by company officials.
Alstom’s North American conventional signaling business has been a key part of the company’s growth strategy in recent years, but the decision to sell it reflects the company’s ongoing efforts to streamline its operations and focus on core areas of expertise. Knorr-Bremse AG is a leading global provider of braking systems and related products for rail transport, and its acquisition of Alstom’s North American conventional signaling business will enable it to expand its offerings in this area.
The sale is expected to be completed by early 2024, subject to regulatory approval and certain closing conditions. It marks a significant milestone in Alstom’s transformation journey and paves the way for further growth and expansion in other areas of the business.
