Alstom has entered into a binding agreement with Knorr-Bremse AG to sell its North American conventional signalling business for a purchase price of around €630 million (£543 million).
The transaction is part of Alstom’s comprehensive company action plan announced on 15th November 2023, aimed at reinforcing its leadership position in the rail industry. Alstom will provide the details of its plan to maintain a solid and sustainable investment grade rating and of its €2 billion (£1.725 billion) deleveraging target at full-year results on 8 May 2024.
Henri Poupart-Lafarge, Chairman and Chief Executive Officer of Alstom, said:
"We are pleased to sign this agreement, which marks an important step in the implementation of our action plan. It evidences the work of our North American signalling employees, who have built and advanced this very successful business over the past few years.”
Alstom will continue to serve the North American signalling market on different segments, notably with Communications Based Train Control (CBTC) and European Train Control System (ETCS) solutions.
Closing of the transaction is only subject to customary conditions, including regulatory approval, and is expected to take place as soon as Summer 2024.
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