Knorr-Bremse Acquires Alstom's Rail Signalling Technology Business in North
America

EQS-News: Knorr-Bremse Aktiengesellschaft / Key word(s): Mergers &
Acquisitions/Takeover
Knorr-Bremse Acquires Alstom's Rail Signalling Technology Business in North
America

19.04.2024 / 17:36 CET/CEST
The issuer is solely responsible for the content of this announcement.

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Knorr-Bremse Acquires Alstom's Rail Signalling Technology Business in North
America

* Knorr-Bremse is strengthening especially its resilient rail business

* The acquisition is accretive from the beginning

  * By acquiring one of the market leaders in North America, Knorr-Bremse is
    increasing its overall revenue share in the aftermarket business and the
    region

  * By entering the global rail control, command, and signalling (CCS)
    technology market, the total addressable rail market volume for
    Knorr-Bremse will increase by up to EUR 20 billion in the medium term

  * Acquisition underscores the clear plan for implementing the Group-wide
    "BOOST 2026" strategy program

* Transaction expected to close during summer 2024

Munich, April 19, 2024 - Knorr-Bremse AG, the global market leader for
braking systems and a leading provider of other rail and commercial vehicle
systems, today announced its acquisition of the conventional rail signalling
technology business of Alstom Signaling North America. With this
acquisition, Knorr-Bremse is successfully making an entry into the highly
attractive control, command, and signalling (CCS) segment of the rail
market. Alstom Signaling is a leading company in North America's CCS market.
For the Knorr-Bremse Rail Vehicle Systems division, the acquisition of this
profitable business creates new prospects for profitable growth,
technological competence, and future digital business models. The
transaction is expected to close during summer 2024.

Marc Llistosella, Chief Executive Officer of Knorr-Bremse AG: "This
acquisition is good for Knorr-Bremse and will drive our profitable growth
further. With it, we are not just building on our highly profitable rail
business. Rather, we will also become one of the US market leaders in North
America in the rail control, command, and signalling segment, or CCS for
short. The transaction pursues a compelling industrial logic and is a very
good match for our development and growth path, as we announced in our
'BOOST 2026' strategy program. We at Knorr-Bremse are putting our plans into
action. We are delighted that we will soon welcome new colleagues to the
Knorr-Bremse team, too."

The acquisition is a significant step in the transformation from a supplier
of vehicle systems to a supplier of systems for the entire rail ecosystem,
explains Dr. Nicolas Lange, member of the Knorr-Bremse AG Executive Board
and responsible for the Rail Vehicle Systems division: "For Knorr-Bremse,
the acquisition of Alstom Signaling North America means a successful entry
to the CCS segment. The CCS market is of approximately EUR 20 billion
globally, making it a highly attractive rail segment. For us as an
international systems supplier, the transaction is a substantial step
forward in electronics and digitalization in rail infrastructure. Brakes and
signalling technology have a critical influence on the safety and capacity
of rail transportation. The CCS segment fits into the DNA of the
Knorr-Bremse Rail division amazingly."

From today's perspective, it is believed that the acquisition will be
accretive right from the outset. The appeal of the CCS market comes from the
market entry barriers, resulting from local approval and technology
standards; a focus on safety in operation and availability, and large and
continuous shares of the aftermarket. Knorr-Bremse has been intimately
familiar with this market-specific environment for decades. This will be
significant support for the integration of the company and future business
development.

Alstom Signaling North America by far has the largest installed base of
signal box technology, train detection, and rail crossings, especially in
the freight segment, as well as a very large share of the aftermarket. In
the future, Knorr-Bremse will be able to offer a CCS technology platform to
operators and system providers in North America under one roof.
Simultaneously, the acquisition strengthens the position of the Rail Vehicle
Systems division in the digitalization business thanks to the access to a
large volume of infrastructure data that can be provided to operators as a
data service or "software as a service."

A purchase price of around EUR 630 million was agreed. This includes a
mid-double-digit million EUR amount for additional expected and highly
profitable project business, which should support the revenue growth
mid-term. Alstom Signaling North America attained revenues of about EUR 300
million and an EBIT margin of approximately 16% according to the preliminary
results in the past fiscal year which ended on March 31, 2024. The
acquisition is to be financed from available liquidity and debt and should
not affect the credit rating.

Media Contacts:

Alexander Stechert-Mayerhöfer, Head of Corporate Communications

Phone: +49 89 3547 1942, e-mail:
alexander.stechert-mayerhoefer@knorr-bremse.com

Investor Relations:

Andreas Spitzauer, Head of Investor Relations

Phone: +49 89 3547 182310, e-mail: andreas.spitzauer@knorr-bremse.com

Knorr-Bremse (ISIN: DE000KBX1006, ticker symbol: KBX) is the global market
and technology leader for braking systems and a leading supplier of other
rail and commercial vehicle systems. Knorr-Bremse's products make a decisive
contribution to greater safety and energy efficiency on rail tracks and
roads around the world. 33,000 employees at over 100 locations in
approximately 30 countries develop and produce innovative solutions and
services that meet the highest technological standards. In 2023,
Knorr-Bremse's two divisions together generated revenues of approximately EUR
7.9 billion. For almost 120 years, the company has been at the cutting edge
of its industries, driving innovation in mobility and transportation
technologies with a leading edge in connected system solutions. Knorr-Bremse
is one of Germany's most successful industrial companies and profits from
the key global megatrends: urbanization, sustainability, digitalization, and
mobility.


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19.04.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS
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   Language:       English
   Company:        Knorr-Bremse Aktiengesellschaft
                   Moosacher Str. 80
                   80809 Munich
                   Germany
   Phone:          +49 89 3547 0
   E-mail:         info@knorr-bremse.com
   Internet:       www.knorr-bremse.com
   ISIN:           DE000KBX1006
   WKN:            KBX100
   Indices:        MDAX
   Listed:         Regulated Market in Frankfurt (Prime Standard);
                   Regulated Unofficial Market in Berlin, Dusseldorf,
                   Hamburg, Hanover, Munich, Stuttgart, Tradegate
                   Exchange; Vienna Stock Exchange (Vienna MTF)
   EQS News ID:    1885147

End of News EQS News Service
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1885147 19.04.2024 CET/CEST