Alstom announces the sale of its North American conventional signalling business. An important milestone in the implementation of the group’s deleveraging plan
Alstom announces the sale of its North American conventional signalling business. An important milestone in the implementation of the group’s deleveraging plan
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Thomas Antoine
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Dani Simons
Send an email19 April 2024 – Alstom, global leader in smart and sustainable mobility, announced today that it has entered into a binding agreement with Knorr-Bremse AG to sell Alstom’s North American conventional signalling business for a purchase price of around €630 million[1].
This transaction is part of the comprehensive company action plan that Alstom announced on 15 November 2023, aiming at reinforcing its leadership position in the Rail industry. Alstom will provide the details of its plan to maintain a solid and sustainable investment grade rating and of its €2 billion deleveraging target at full-year results on 8 May 2024.
"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 signalling employees, who have built and advanced this very successful business over the past few years”, said Henri Poupart-Lafarge, Chairman and Chief Executive Officer.
This transaction concerns the conventional part of the North American signalling business, and the perimeter to be sold had revenues of approximately €300 million in FY 2023/24.
"We are pleased to sign this agreement, which marks an important step in the implementation of our action plan."
Alstom will continue to serve the North American signalling 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.
Alstom is accompanied by Crédit Agricole CIB as financial advisor, White & Case LLP as legal advisor, Cleary Gottlieb Steen & Hamilton LLP as antitrust advisor, and Accuracy for financial due diligences.
[1] Proceeds for Alstom at closing (net of expected tax and transaction costs) are expected to reach ca.€620 million.
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