Alstom (OTCPK:ALSMY) (OTCPK:AOMFF) announced an agreement to sell its North American conventional rail signaling business to German braking systems manufacturer Knorr-Bremse (OTCPK:KNBHF) (OTCPK:KNRRY) for ~€630M ($670.5M).
The sale is part of Alstom’s deleveraging plan, which aims to reduce its debt by €2B. The company will release details of its plan on May 8.
The North American business accounted for ~€300M in revenues for FY 2023-24, according to Alstom.
Knorr-Bremse stated that the acquisition will allow it to enter the “highly attractive” control, command and signaling segment, making it a leader in the U.S. market.
