Alstom has agreed to sell its North American conventional signaling business to Knorr-Bremse AG for a purchase price of about $671 million. This sale is part of Alstom’s comprehensive company action plan announced on November 15, 2023.
Alstom officials stated in a press release that this transaction marks a milestone in their efforts to maintain a solid and sustainable investment grade rating and achieve their 2 billion euro ($2.1 billion) deleveraging target. The conventional part of the North American signaling business being sold generated revenue of about $320 million in fiscal-year 2023.
Following the sale, Alstom will continue to serve the North American signaling market in different segments, including communications-based train control and European train control systems. This strategic move allows Alstom to focus on key areas of growth and innovation while streamlining its operations. The company remains committed to providing top-notch signaling solutions to customers while enhancing its overall market position.
The sale to Knorr-Bremse AG highlights Alstom’s commitment to adapt and evolve in a rapidly changing industry landscape. By divesting its North American conventional signaling business, Alstom positions itself for future growth and continued success in the rail industry. This transaction demonstrates Alstom’s dedication to driving value for all stakeholders while maintaining a strong financial position and strategic focus. Alstom’s leadership team is confident that this sale will create new opportunities for growth and innovation in the evolving rail market.
In conclusion, the sale of Alstom’s North American conventional signaling business marks a significant step towards achieving the company’s financial goals and maintaining its competitive position in the rail industry. With its focus on key areas of growth and innovation, as well as its commitment to providing top-notch solutions to customers, Alstom is poised for continued success in the years ahead.
