Alstom announces the sale of its conventional signalling business in North America

On April 19th, 2024, Alstom announced the disposal of its North American conventional signaling business to Knorr-Bremse for a purchase price of around €630m.

Alstom’s North American conventional signaling business holds leadership positions in their underlying markets, with a differentiated suite of products and strong R&D capabilities. The business generated c.€300m in sales in FY2023/24. This transaction will generate c.€620m proceeds for Alstom and is part of the comprehensive company action plan that Alstom announced on November 15th, 2023, aiming at reinforcing its leadership position in the Rail industry.

This transaction will enable Knorr-Bremse to complement its core offering with further rail related products and services, as well as increasing its North American footprint. The transaction is subject to customary regulatory approvals, with closing anticipated during Summer 2024.

Key highlights

Crédit Agricole CIB acted as sole sell-side financial advisor to Alstom on this landmark cross-border carve-out transaction, delivering seamless execution through its Paris and New York Investment Banking platforms.
The Bank played a pivotal role throughout the process and during final negotiations, maintaining strong competitive tension and momentum, allowing to achieve a satisfactory result for our client under a tight timeline. This deal reinforces the Bank’s close relationship with Alstom, a Strategic client, and further illustrates our distinct positioning on the market as the go-to sell-side M&A house for tailor-made, complex carve-out processes.
It further elevates the Bank’s positioning as a leading M&A advisor within the rail sector globally, with the successful result underpinned by the Bank’s strong network of relationships with all key strategic corporates and active U.S. sponsors.
This transaction again illustrates the strength of our Industrials & Business Services franchise with large corporates, with a distinct track record on successfully delivering large complex carve-outs.

About Alstom and its North American conventional signaling business
Alstom is a French listed manufacturer of integrated rail transport systems, rolling stock and train control systems, active in the fields of passenger transportation, signaling, and locomotives.

About Knorr-Bremse
Founded in 1905 and based in Germany, Knorr-Bremse is the global market and technology leader for braking systems and a leading supplier of other rail and commercial vehicle systems. The Company generated €7.9bn in sales in 2023.