Knorr-Bremse AG has announced the acquisition of Alstom Signaling North America's conventional rail signalling business. This strategic move marks Knorr-Bremse's entry into the control, command, and signalling (CCS) market in North America, a sector valued at around €20 billion worldwide. The transaction is expected to close in the summer of 2024.
By integrating Alstom's signalling technologies, Knorr-Bremse aims to strengthen its position in the North American rail market, significantly increase its aftermarket revenues and expand its total addressable market in the rail sector. This acquisition is part of Knorr-Bremse's broader "BOOST 2026" strategy to expand its capabilities and influence in the global rail industry.
Marc Llistosella, CEO of Knorr-Bremse AG, stated: “This acquisition is good for Knorr-Bremse and will drive our profitable growth further. With it, we are not just building on our highly profitable rail business. Rather, we will also become one of the US market leaders in North America in the rail control, command, and signalling segment, or CCS for short. The transaction pursues a compelling industrial logic and is a very good match for our development and growth path, as we announced in our ‘BOOST 2026’ strategy program.”
The acquisition, valued at approximately €630 million, includes the expectation of additional profitable project business, which is expected to further stimulate revenue growth. Alstom Signaling North America, known for its extensive installed base in interlocking, train detection, and grade crossings, particularly in the freight sector, reported revenues of around €300 million and an EBIT margin of around 16% for the financial year ending 31 March 2024.
