Knorr-Bremse finalizes acquisition of Alstom's Signaling Business

Munich, Germany (Metro Rail Today): Knorr-Bremse, a global leader in braking systems and safety-critical systems for rail and commercial vehicles, has completed the acquisition of Alstom Signaling North America. This strategic move marks a significant milestone in Knorr-Bremse’s pursuit of long-term profitability and sustainable growth, aligning with its BOOST 2026 strategy.

The acquisition includes all conventional rail signaling business activities of Alstom Signaling North America, encompassing a robust portfolio of signaling products, sales, service, and manufacturing operations across the USA and Canada. Knorr-Bremse has also brought on board approximately 800 employees from Alstom’s team, who will join KB Signaling, a new business unit within the North American rail division.

Marc Llistosella, CEO of Knorr-Bremse AG, commented, “Our entry into the North American rail signaling market represents a strategic enhancement of our Group’s BOOST 2026 initiative. This acquisition allows us to integrate a high-margin, market-leading business into our portfolio, driving our goal of long-term profitability and sustainable growth. It exemplifies our commitment to creating greater value and expanding into new, promising business areas.”

The acquisition of Alstom Signaling North America fits seamlessly with Knorr-Bremse’s strategic focus on safety-critical, mission-critical solutions. Dr. Nicolas Lange, Member of the Executive Board of Knorr-Bremse AG responsible for the Rail division, stated, “Safety and reliability in rail transportation are heavily dependent on advanced braking and signaling technologies. By entering the North American signaling market, we are positioning ourselves as a leading systems and platform partner, poised to capitalize on the profitability and growth opportunities this sector offers.”

The newly acquired business includes two production plants and multiple engineering facilities in the USA. For the fiscal year ending March 31, 2024, Alstom Signaling North America reported revenues of approximately EUR 300 million with an EBIT margin of around 16 percent.

Knorr-Bremse’s BOOST 2026 strategy is centered around advancing in highly profitable product areas that align with the company's core expertise in safety-critical systems. The newly established KB Signaling unit will focus on Control, Command, and Signaling (CCS) technologies, including wayside train control, crossing control, relays, track products, and onboard train supervision.

The acquisition significantly bolsters Knorr-Bremse’s position in the North American market and complements its existing European signaling operations. The company aims to leverage its enhanced capabilities to offer innovative CCS solutions and expand its leadership in the global rail signaling market, which Knorr-Bremse estimates could be worth up to EUR 20 billion.

Knorr-Bremse recognizes substantial business opportunities in the digitalization of rail transportation. The company plans to develop new solutions that enhance smart interaction between trackside signaling technologies and onboard systems. Additionally, Knorr-Bremse’s focus on infrastructure condition monitoring and digital products will address the growing demand for precise data and maintenance solutions, providing significant value to rail and fleet operators.

The acquisition of Alstom Signaling North America marks a pivotal development in Knorr-Bremse’s strategic growth, positioning the company as a formidable player in the global rail signaling sector and paving the way for further innovation and expansion in the years to come.