MUNICH (Metro Rail News): Knorr-Bremse AG, a manufacturer of braking systems and a leading provider of other rail and commercial vehicle systems announces its acquisition of Alstom Signaling North America’s conventional rail signalling technology business on April 19, 2024. The acquisition marks Knorr-Bremse’s entry into the control, command, and signalling (CCS) segment, a strategic move to drive profitable growth and expand its technological competence in the rail industry.
Knorr-Bremse AG Entered into the Highly Attractive CCS Segment
Knorr-Bremse’s acquisition of Alstom Signaling North America’s business positions the company as one of the US market leaders in the CCS segment. This move aligns with Knorr-Bremse’s ‘BOOST 2026’ strategy program to enhance its market presence and drive innovation.
Marc Llistosella, Chief Executive Officer of Knorr-Bremse AG, commented on the acquisition: “This acquisition is good for Knorr-Bremse and will drive our profitable growth further. With it, we are not just building on our highly profitable rail business. Rather, we will also become one of the US market leaders in North America in the rail control, command, and signalling segment, or CCS for short.”
A Strategic Fit for Knorr-Bremse
The acquisition marks a significant milestone in Knorr-Bremse’s evolution from a supplier of vehicle systems to a provider of comprehensive rail ecosystem solutions.
Dr. Nicolas Lange, member of the Knorr-Bremse AG Executive Board, emphasised the importance of the acquisition, stating, “For Knorr-Bremse, the acquisition of Alstom Signaling North America means a successful entry into the CCS segment. The CCS market is of approximately €20 billion globally, making it a highly attractive rail segment.”
Key Details of the Acquisition
– Purchase Price: The acquisition was finalised at approximately €630 million, comprising a mid-double-digit million EUR amount for additional anticipated and highly profitable project ventures.
– Financial Performance: Alstom Signaling North America reported revenues of about €300 million and an EBIT margin of approximately 16% in the past fiscal year.
– Expected Closure: The transaction is expected to close during the summer of 2024, subject to customary conditions, including regulatory approval.
Future Prospects and Synergies
The acquisition enables Knorr-Bremse to offer a comprehensive CCS technology platform to operators and system providers in North America. Moreover, it enhances the company’s standing in the digitalisation sector by granting access to a vast amount of infrastructure data that can be provided as a data service or through “software as a service” offerings.
Alstom’s Response
Alstom, a global leader in smart and sustainable mobility, sees this transaction as an important step in implementing its deleveraging plan.
Henri Poupart-Lafarge, Chairman and Chief Executive Officer of Alstom, stated, “We are pleased to sign this agreement, which marks an important step in the implementation of our action plan.”
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