Alstom Sells North American Signalling Business to Knorr-Bremse

(Reuters) – French train maker Alstom (EPA:ALSO) announced on Monday the completion of the sale of its North American conventional signalling business to Knorr-Bremse for $690 million.

The closing of the sale fulfills the execution of the company’s 2 billion euro ($2.2 billion) deleveraging plan, as stated by Alstom.

The announcement was made in April as part of a strategy to reduce debt by 2 billion euros. Further details of the plan were provided in May, which included a $1 billion rights issue backed by its main shareholders.

Alstom is the world’s second-largest train manufacturer, following China’s CRRC. The company has ongoing contracts, including the HS2 high-speed railway in Britain and the largest train tender in Danish rail history.

The company’s cash flow issues partly stem from problematic contracts inherited from its 2021 acquisition of Bombardier (OTC:BDRBF)’s rail business.

Note: ($1 = 0.9043 euros)