Vossloh signs contract for the sale of the Electrical Systems business unit to Knorr-Bremse

Vossloh AG today signed a contract for the sale of the Electrical Systems business unit, which is presented as discontinued operations, to Knorr-Bremse Systeme für Schienenfahrzeuge GmbH, a wholly-owned subsidiary of Knorr-Bremse AG in Munich. In return, Vossloh AG receives a cash selling price of €72.5 million. This includes a variable component of €25 million which is subject to future adjustment insofar as a project does not develop according to Vossloh’s current expectations. In addition, the buyer has committed to replace all guarantees and sureties that Vossloh had assumed for the Electrical Systems business unit. The economic transfer to Knorr-Bremse Systeme für Schienenfahrzeuge will take effect retroactively on July 1, 2016. Vossloh expects a net cash inflow in the middle double-digit million range when the transaction is completed. The Supervisory Board of Vossloh AG has already approved the transaction. The sale is still subject to merger control clearances. Completion of the transaction is expected for the first quarter 2017.

Dr.h.c. Hans Martin Schabert, Chairman of the Executive Board at Vossloh AG: “With the sale of the Electrical Systems business unit, Vossloh has reached a further milestone in the implementation of its Group strategy. Following intensive and long negotiations with various interested parties, in Knorr-Bremse we have found a strategically ideal and financially strong partner for Kiepe. Under the management of its future owner, Kiepe will have great opportunities and new prospects for a sustainably successful development.”

Klaus Deller, Chairman of the Executive Board at Knorr-Bremse AG and responsible for the Rail Vehicle Systems division, added: “With the acquisition of Vossloh Kiepe, who have amassed more than a century of experience in electrical systems for rail vehicles, we are taking the logical next step in the successful development of our business. For our customers the main focus is on the technological benefits generated by greater sub-system connectivity. Along with our rail vehicle systems portfolio, our commercial vehicle systems offering will also be expanded as a result of the acquisition. Given the increasing levels of electrification in the commercial vehicle sector, as a systems supplier for electric buses Vossloh Kiepe opens up new growth opportunities and potential applications in this segment.”

Electrical Systems, which is located in Düsseldorf, is the second of three business units in the Transportation division which Vossloh is selling in the course of its focus of Group activities in rail infrastructure. As a manufacturer of innovative electrical drive equipment for public transportation vehicles, Electrical Systems is well-known in Germany and abroad. In 2015, Electrical Systems generated sales of €249.5 million.

The selling process for the Transportation division’s remaining business unit Locomotives will be pursued at the beginning of 2017. In particular, the progressing recovery of the locomotive business, the move to the new, modern production location in Kiel as well as the major order that was won in France will push the selling process forward.

With its products and services, Vossloh is a leader in rail infrastructure. This good competitive position in the rail infrastructure industry will be secured for the long term by Vossloh’s targeted future growth.