(Reuters) – French train manufacturer Alstom (EPA:) has agreed to sell its North American conventional rail signaling business to German rail systems manufacturer Knorr-Bremse AG for about 630 million euros ($671 million), it said Friday.
The sold business accounted for approximately 300 million euros in revenue for the full year 2023/2024, the group said in a statement, adding that it will continue to serve the North American signal market in other segments.
The proceeds from the sale, after deduction of expected taxes and transaction costs, should amount to approximately EUR 620 million.
The deal is expected to be completed as early as the summer, Alstom said, following regulatory approval.
The transaction is part of Alstom’s plan to reduce its debt by 2 billion euros, which will be revealed in detail on May 8.
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