Alstom sold its Rail Signalling Technology Business to Knorr-Bremse for €630 million

Krishtina D'Silva Posted on: 2024-04-19 15:30:00 Viewer: 1,896 Comments: 0 Country: Germany City: Grafing bei Munchen

Alstom sold its Rail Signalling Technology Business to Knorr-Bremse for €630 million

Munich, Germany (Urban Transport News):  Knorr-Bremse AG, a global leader in braking systems and rail vehicle systems, has taken a significant step towards fortifying its position in the rail market with the acquisition of Alstom Signaling North America’s conventional rail signalling technology business. This move underscores Knorr-Bremse’s strategic commitment to diversification and growth within the rail industry.

With this acquisition, Knorr-Bremse enters the control, command, and signalling (CCS) segment, a highly lucrative market segment within the rail industry. By expanding its offerings to include CCS technology, Knorr-Bremse aims to capitalize on new revenue streams and enhance its competitiveness in the global rail market.

The acquisition is expected to have an immediate positive impact on Knorr-Bremse’s revenue streams. By integrating Alstom Signaling North America’s profitable business, Knorr-Bremse anticipates a boost in its overall revenue share, particularly in the aftermarket business and the North American region.

Knorr-Bremse’s acquisition of Alstom’s rail signalling technology business is poised to have ripple effects across the global railway market. As one of the market leaders in North America, Knorr-Bremse’s expanded presence in the CCS segment will contribute to the diversification and growth of the global rail industry.

The acquisition aligns seamlessly with Knorr-Bremse’s overarching strategic program, BOOST 2026. By integrating Alstom’s rail signalling technology business, Knorr-Bremse is executing its plans to enhance technological competence and drive profitable growth within the rail sector.

Knorr-Bremse expects the acquisition to be immediately accretive, further bolstering its financial performance. With a focus on safety, availability, and aftermarket support, the CCS market presents significant growth opportunities for Knorr-Bremse, reinforcing its position as an industry leader.

One of the key benefits of the acquisition is Knorr-Bremse’s access to Alstom Signaling North America’s extensive installed base of signal box technology and rail crossings. This access enables Knorr-Bremse to offer comprehensive CCS solutions to operators and system providers, driving innovation and efficiency in rail infrastructure.

The acquisition, valued at approximately EUR 630 million, is expected to support Knorr-Bremse’s revenue growth in the medium term. With Alstom Signaling North America generating revenues of around EUR 300 million and an impressive EBIT margin, Knorr-Bremse anticipates significant financial benefits from the transaction.

The acquisition is poised to have immediate positive impacts, with Knorr-Bremse anticipating increased revenue and market leadership in the CCS segment. Marc Llistosella, CEO of Knorr-Bremse AG, expressed enthusiasm about the acquisition, stating, "This acquisition is good for Knorr-Bremse and will drive our profitable growth further. We are not just strengthening our rail business; we are also positioning ourselves as one of the US market leaders in the rail CCS segment."

Dr. Nicolas Lange, a member of the Knorr-Bremse AG Executive Board, highlighted the strategic significance of the acquisition, emphasizing the company's shift towards becoming a comprehensive supplier within the rail ecosystem. "For Knorr-Bremse, this acquisition represents a successful entry into the CCS segment, which presents significant growth opportunities. It aligns with our long-term strategy of focusing on electronics and digitalization in rail infrastructure," explained Dr. Lange.

Knorr-Bremse’s acquisition of Alstom’s rail signalling technology business marks a transformative moment for the company and the global rail industry. By expanding its offerings into the CCS segment, Knorr-Bremse is poised to drive innovation, efficiency, and growth in rail transportation worldwide.

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