Knorr-Bremse AG is entering the Control, Command and Signaling (CCS) market by acquiring the Alstom Signaling North America business.
This transaction is valued at 630 million EUR and is expected to close in summer 2024.
It will see Knorr-Bremse expand its current portfolio, which provides braking systems and other components for rail and commercial vehicles.
The takeover is part of Knorr-Bremse’s plan to develop from a system supplier for vehicles to a system supplier for the entire rail system.
“This acquisition is good for Knorr-Bremse and will further drive our profitable growth. We are not only expanding our highly profitable rail business. We will also become one of the market leaders in North America in the CCS – Control, Command and Signaling rail segment.
“The transaction follows an impressive industrial logic and fits very well with our development and growth path, as we announced in our strategy program 'BOOST 2026'. At Knorr-Bremse, we implement what we have planned. And we look forward to welcoming our new colleagues to the Knorr-Bremse team soon.”
By integrating Alstom Signaling North America’s business, Knorr-Bremse anticipates immediate positive impacts on profitability.
In addition, the acquisition facilitates Knorr-Bremse’s expansion into digitalisation within the rail sector. By gaining access to a diverse array of infrastructure data, Knorr-Bremse aims to offer innovative data services, enhancing operational efficiency and safety for rail operators.
“For Knorr-Bremse, the acquisition of Alstom Signaling North America represents a successful entry into the CCS segment. The CCS market worldwide is worth around EUR 20 billion and is therefore a highly attractive rail segment. For us as an international system supplier, the transaction is a significant step forward in the electronics and digitalisation of the rail infrastructure. Brakes and signaling technology play a key role in determining safety and capacity in rail transport. The CCS segment therefore fits perfectly into the DNA of the Knorr-Bremse Rail Division.”
