Knorr-Bremse and Radial Capital Partners (RCP) signed an agreement to sell its Powertech business, covering all power supply activities.
The transaction comprises the complete takeover of the global business activities of Powertech and of its entire workforce. Allowing for required capital resources, deconsolidation effects as well as further transaction-related one-off expenses, a restructuring expense in the financial result of just under EUR 80 million in total will be charged.
“Within the framework of the ongoing alignment of our business activities with our core competencies as a key supplier of subsystems, components and services for the rail vehicle industry, we have decided to sell the Powertech business unit. As it turns out, there are fewer synergies between the business unit and the other activities of Knorr-Bremse than originally expected,” said Jürgen Wilder, Member of the Executive Board of Knorr-Bremse AG and responsible for the Rail Vehicle Systems division.
The business unit includes three companies in Germany, Knorr-Bremse Powertech Corp. in the United States and other business activities in Australia, Spain and China.
With 526 employees, the Powertech business unit manufactures power supply systems for rail vehicles and industrial applications.
In 2018 the business unit reported revenues of approximately EUR 90 million and a result (EBIT) of EUR -19 million. The product portfolio comprises converters and electrical equipment for rail vehicles, as well as for power generation and energy storage systems, a wide range of industrial applications, and highly dynamic engine and transmission test benches.