Knorr-Bremse buys Alstom business. Knorr-Bremse AG, a major player in the global braking systems market and a leading supplier of other systems for rail and commercial vehicles, is acquiring the conventional rail signalling technology business of Alstom Signaling North America.
With this acquisition, Knorr-Bremse succeeds in entering the highly attractive segment of the railway control, command and signalling (CCS) market. Alstom Signaling is a leading company in the North American CCS market. For the Knorr-Bremse Rail Vehicle Systems division, the acquisition of this profitable business creates new prospects for profitable growth, technological competence and future digital business models. The transaction is expected to close in the summer of 2024, according to a statement from the German company.
Knorr-Bremse buys Alstom business
“This acquisition is good for Knorr-Bremse and will further boost our profitable growth. With this, we are not just building on our highly profitable rail business. On the contrary, we will also become one of North America’s market leaders in the segment of railway control, command and signalling, or CCS for short. The transaction follows a compelling industrial logic and fits very well with our development and growth path, as announced in our strategic program “BOOST 2026″. We at Knorr-Bremse are putting our plans into action. We are delighted that we will soon welcome new colleagues to the Knorr-Bremse team”, says Marc Llistosella, CEO of Knorr-Bremse AG.
The acquisition is an important step in the transformation from a supplier of vehicle systems to a system provider for the entire railway ecosystem, explains Nicolas Lange, Member of the Executive Board of Knorr-Bremse AG and responsible for the Rail Vehicle Systems division: “For Knorr-Bremse, the acquisition of Alstom Signaling North America means a successful entry into the CCS segment. The CCS market is worth around EUR 20 billion globally, making it a very attractive rail segment. For us, as an international systems supplier, the transaction represents a substantial step forward in the field of electronics and digitalisation in rail infrastructure. Brakes and signalling technology have a critical influence on the safety and capacity of rail transport. The CCS segment fits amazingly into the DNA of the Knorr-Bremse Rail division.”
The acquisition will have a growth effect right from the start. The attractiveness of the CCS market stems from the barriers to market entry resulting from local approval and technology standards; the focus on operational safety and availability; and the continued high secondary market share. Knorr-Bremse has been familiar with this market environment for decades. This will be a significant support for the company’s integration and future business development.
Alstom Signaling North America has the largest installed base of signal box, train detection and rail crossing technology, particularly in the freight segment, as well as a very large share of the aftermarket. In the future, Knorr-Bremse will be able to offer a CCS technology platform to North American operators and system suppliers under one roof.
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