French train manufacturer Alstom has announced the sale of its North American conventional rail signaling business to German rail systems manufacturer Knorr-Bremse AG for approximately 630 million euros ($671 million). The business being sold generated around 300 million euros in revenues for the full year of 2023/24. Despite this sale, Alstom will continue to operate in other segments of the North American signaling market.
The net proceeds from the sale, after accounting for tax and transaction costs, are expected to reach around 620 million euros. The deal is set to be finalized by summer following regulatory approval. This move is a part of Alstom’s strategy to reduce its debt by 2 billion euros, with more details on this plan to be revealed on May 8.
The sale of its North American conventional rail signaling business is a significant step for Alstom as it moves towards strengthening its financial position and focusing on other segments of the signaling market. This transaction will allow the company to streamline its operations and improve its overall financial health. The sale is expected to have a positive impact on Alstom’s balance sheet and contribute to its long-term growth and success.