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

Client successes
29/04/2024

Crédit Agricole CIB acted as sole financial advisor to Alstom on the disposal of its North American conventional signaling business to Knorr-Bremse.

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.

We are pleased to announce the signing of this highly-visible cross-border carve-out, which reinforces the Bank’s leadership as advisor on major disposals by large corporates. By leveraging our expertise and resources, we were able to reach a successful outcome and create lasting value for our client. I warmly thank our dedicated team whose tireless efforts made this transaction seamless through our Paris and New-York offices.”

Laurent CAPES

Head of Global Investment Banking

The Bank played a pivotal role in the success of this transaction, maintaining strong competitive tension under a tight timeline. This deal further illustrates our thriving Industrials & Business Services Investment Banking franchise amongst multinational corporates and our status as advisor of choice on complex carve-outs.

Sébastien RAPIN

Head of Industrials, Consumer, Agribusiness & Healthcare Group (ICAH)

This strategic transaction epitomizes the strong cross-border capabilities of the Bank which was able to leverage its global footprint to create a tailored process for Alstom. We are thrilled by the outcome of this transaction which further solidifies our positioning in North America.

Jean-Marc NGUYEN

Head of Global Investment Banking Americas

Our close relationship with Alstom and our global coverage were crucial in positioning Crédit Agricole CIB as the preferred M&A advisor for this strategic transaction. We are excited by the positive outcome that we delivered for our client and are looking forward to new opportunities to reinforce our relationship with Alstom.”

Dominique DUVAL

Senior Banker

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.
 

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