Alstom Finalizes Sale of North American Signalling Business
Alstom has successfully completed the sale of its North American conventional signalling business to Knorr-Bremse AG for around USD 690 million. This strategic decision is part of the company's broader initiative to improve its financial position through a dedicated €2 billion deleveraging plan.
A Successful Transition
The completion of this sale represents a significant milestone in Alstom’s growth strategy, following a binding agreement that was signed earlier in 2024. This divestiture is an essential element of a larger action plan that Alstom introduced, aimed at stabilizing its financial health and achieving an Investment Grade rating.
Commitment to the North American Market
Even after the sale, Alstom remains dedicated to its role in the North American signalling market. The company will continue to deliver cutting-edge solutions, particularly through communications-based train control (CBTC) and European train control systems (ETCS). This ongoing commitment highlights Alstom’s resilience and adaptability in a rapidly evolving transportation landscape.
A Legacy of Innovation
With a history spanning over 170 years, Alstom has positioned itself as a leader in mobility technology within the region. The company is committed to transferring technology and localizing manufacturing processes, thereby creating sustainable and innovative engineering jobs across North America. Alstom’s extensive portfolio features high-speed trains, trams, metros, and a variety of services that cater to a diverse clientele, including major transit authorities and rail systems.
Strengthening Financial Performance
This transaction allows Alstom to sharpen its focus on improving financial performance and operational efficiency. With the successful implementation of its deleveraging strategy, the company has stabilized its ratings and is now poised to invest further in innovative mobility solutions that are both environmentally friendly and technologically advanced.
Expert Guidance
In executing this sale, Alstom worked closely with a team of trusted advisors, including Crédit Agricole CIB as its financial advisor, White & Case LLP as legal counsel, and Cleary Gottlieb Steen & Hamilton LLP for antitrust expertise. Their guidance ensured a smooth transition and adherence to industry regulations.
About Alstom
Alstom is dedicated to fostering a low-carbon future by developing innovative and sustainable transportation solutions. From trains to signaling and digital mobility, Alstom provides a comprehensive range of offerings that meet diverse customer needs across 64 countries. The company employs over 84,700 individuals and reported substantial revenues in the last fiscal year.
Frequently Asked Questions
What is the significance of Alstom's recent sale?
The sale enhances Alstom's financial stability as part of a strategic €2 billion deleveraging plan.
Which company acquired Alstom's signalling business?
Knorr-Bremse AG acquired Alstom's North American conventional signalling business.
What will Alstom focus on in the North American market after the sale?
Alstom will continue to offer advanced signaling solutions, including CBTC and ETCS.
How long has Alstom been operational in North America?
Alstom has a legacy of over 170 years in North America, contributing to various transportation projects.
What is Alstom's commitment to sustainability?
Alstom aims to support a low-carbon future by developing innovative transport solutions that are both sustainable and technologically advanced.
