Knorr-Bremse acquires Alstom’s Rail Signalling Technology Business at €630 million

Munich, Germany (Metro Rail Today): In a strategic move to fortify its position in the rail market, Knorr-Bremse AG, a global leader in braking systems and rail vehicle systems, has announced its acquisition of Alstom’s conventional rail signalling technology business in North America. This acquisition marks Knorr-Bremse’s foray into the control, command, and signalling (CCS) segment, presenting new avenues for growth and technological innovation.

The acquisition, valued at around EUR 630 million, is a significant milestone in Knorr-Bremse’s growth trajectory. According to Marc Llistosella, CEO of Knorr-Bremse AG, this move aligns with the company’s strategic objectives outlined in the 'BOOST 2026' program, aimed at driving profitable growth and expanding market presence. Llistosella expressed enthusiasm about the prospects of becoming a key player in the North American rail CCS market, emphasizing the industrial logic and strategic fit of the transaction.

Dr. Nicolas Lange, member of the Knorr-Bremse AG Executive Board, highlighted the transformative impact of the acquisition on the company's evolution into a comprehensive systems provider for the rail ecosystem. With a focus on digitalization and electronics in rail infrastructure, Knorr-Bremse aims to leverage its expertise in brakes and signalling technology to enhance safety and efficiency in rail transportation.

The CCS market presents attractive opportunities for Knorr-Bremse, characterized by stringent safety standards, a sizable aftermarket, and barriers to entry. The acquisition of Alstom Signaling North America, renowned for its extensive installed base and aftermarket presence, positions Knorr-Bremse to offer integrated CCS solutions to operators and system providers in the region.

The purchase price includes provisions for additional project business, expected to contribute to revenue growth in the mid-term. The acquisition is expected to be accretive from the outset and will be financed through a combination of available liquidity and debt, ensuring minimal impact on Knorr-Bremse’s credit rating.

Knorr-Bremse’s entry into the CCS segment underscores its commitment to innovation and customer-centric solutions in the rail industry. By integrating Alstom’s signalling technology business, Knorr-Bremse aims to strengthen its digitalization capabilities and drive value for stakeholders across the rail ecosystem.