Alstom entered into a binding agreement with Knorr-Bremse AG to sell Alstom’s North American conventional signaling business for a purchase price of around $671 million.

The transaction is part of the comprehensive company action plan that Alstom announced in November, aiming at reinforcing its leadership position in the rail industry.

What’s Next for Alstom?

Alstom will provide the details of its plan to maintain a solid and sustainable investment grade rating, as well as its approximate $2 billion de-leveraging target in May.

"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 signaling employees, who have built and advanced this very successful business over the past few years”, said Henri Poupart-Lafarge, Alstom’s chairman and CEO.

The transaction concerns the conventional part of the North American signaling business and the perimeter to be sold had revenues of approximately $320 million in FY 2023/24.

Alstom to Remain in Signaling

Alstom will continue to serve the North American signaling 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.