Knorr Bremse says the sale of the company, which employs 106 staff, is part of the strategic realignment of its vehicle services business in Scandinavia.
The transaction is due to be completed in the first quarter of this year.
Swedtrac owns workshops at Tillberga west of Stockholm and specialises in rolling stock modernisation, refurbishment, overhauls, and accident repairs.
The company was acquired by Knorr-Bremse in 2013 and became an approved supplier to Swedish national passenger operator SJ in 2014. It is currently refurbishing SJ’s fleet of 36 X2000 tilting trains under a contract awarded in April 2016.