Alstom, a French train manufacturer, has announced the sale of its North American conventional rail signaling business to Knorr-Bremse AG for approximately 630 million euros ($671 million). The sale is expected to generate net proceeds of around 620 million euros after accounting for tax and transaction costs.
The company’s conventional rail signaling business generated around 300 million euros in revenues for the full year of 2023/24. Despite this sale, Alstom will continue to operate in other segments of the North American signaling market. This move is part of Alstom’s strategy to reduce its debt by 2 billion euros, with more details on this plan to be revealed on May 8.
This significant step will allow Alstom to streamline its operations and improve its overall financial health. The sale is expected to have a positive impact on Alstom’s balance sheet and contribute to its long-term growth and success.
