Knorr-Bremse Expands into North American Rail Signalling Market with Alstom Acquisition

Knorr-Bremse AG, a global leader in braking systems and other rail and commercial vehicle systems, has announced the acquisition of Alstom’s conventional rail signalling technology business in North America. This move significantly strengthens Knorr-Bremse's foothold in the control, command, and signalling (CCS) sector. Expected to be accretive from the start, this acquisition aligns with Knorr-Bremse's "BOOST 2026" strategic program, essentially boosting its potential in the North American CCS market and rail ecosystem as a whole.

This deal, valued at approximately EUR 630 million, includes an expected addition to the revenue stream from highly profitable project business and aims at enhancing the digital capabilities of Knorr-Bremse’s Rail Vehicle Systems division. With an EBIT margin of approximately 16% reported in the last fiscal year, Alstom Signaling North America presents a compelling asset for Knorr-Bremse in pursuit of market leadership in rail safety and efficiency technologies.

The completion of this transaction is anticipated during the summer of 2024, financed through available liquidity and debt without influencing the credit rating. This acquisition not only enhances Knorr-Bremse's capacity in rail infrastructure technology but also significantly broadens its service offerings to include data services and software as a service (SaaS), leveraging a robust installed base in North America’s CCS segment.