Knorr-Bremse, a Notable MDAX Corporation, Announces Acquisition of Alstom's North American Rail Signaling Business. The agreed purchase price amounts to approximately 630 million euros. This amount also includes a mid-double-digit million investment for expected additional projects.

Alstom Signaling North America, which most recently generated sales of around 300 million euros and an EBIT margin of about 16 percent in the fiscal year ending March, is expected to immediately contribute to the profitability of Knorr-Bremse. The completion of the transaction is planned for the summer of 2024.

The acquisition will be financed through existing cash reserves and external debt, with no expected impact on Knorr-Bremse's credit rating. Marc Llistosella, CEO of Knorr-Bremse, expressed optimism about the acquisition: "This not only strengthens our highly profitable rail business but also positions us as one of the market leaders in North America in the Control, Command and Signaling (CCS) sector within the rail segment."

In parallel, UBS has raised the price target for Knorr-Bremse from 79 to 86 euros and continues to recommend the stock for purchase. According to analyst Sven Weier, the company should continue to benefit from structural growth in rail transport and the truck segment, in addition to internal opportunities for margin improvement.

In XETRA trading, a positive reaction to the news was observed, with Knorr-Bremse's share price temporarily rising by 4.04 percent to 70.85 euros.