The agreement was signed on September 30, with closing taking place immediately.

The transaction comprises the complete takeover of the global business activities of Powertech and its entire workforce of 526 employees. The business unit includes three companies in Germany - Knorr-Bremse Powertech GmbH, Knorr-Bremse Powertech GmbH & Co KG and Knorr-Bremse Powertech Verwaltungs GmbH - as well as Knorr-Bremse Powertech Corp in the United States and other business activities in Australia, Spain and China.

The Powertech business manufactures power supply systems for rail vehicles and industrial applications. In 2018 the business unit reported revenues of approximately €90m and Ebit of -€19m.

The product portfolio also comprises converters and electrical equipment for power generation and energy storage systems and a range of industrial applications, and engine and transmission test benches.

Allowing for required capital resources, deconsolidation effects and further transaction-related one-off expenses, a restructuring expense of just under €80m will be included in Knorr-Bremse’s financial results.

RCP specialises in investing in medium-sized industrial companies that are in turnaround and special situations, and in particular in peripheral activities of corporate groups that offer potential for operational value creation.

“Our regular review of performance and strategic fit within our portfolio showed that the sale of Powertech is the best solution,” says Mr Ralph Heuwing, member of the executive board of Knorr-Bremse and CFO. “While this will cause a one-off restructuring charge this year, this step will lead to a sustained improvement of 50 basis points in the operating Ebit margin of our continued operations, as early as 2020.”