Knorr-Bremse RailServices and Kiepe Electric to be sold to Mutares

Knorr-Bremse RailServices' Wolverton facility. Photo: Knorr-Bremse.
Knorr-Bremse RailServices' Wolverton facility. Photo: Knorr-Bremse.

Knorr-Bremse has agreed to sell its UK subsidiaries Knorr-Bremse RailServices and Kiepe Electric to German holding company Mutares.

The deal is expected to be closed by the autumn with both businesses to be renamed in the process.

Knorr-Bremse said the move is down to a “strategic realignment” of its vehicle services business in the UK.

Its focus will now be on its components and aftermarket business Knorr-Bremse Rail Systems in the country.

Mutares is known for acquiring companies or divisions that are no longer part of the core business of a larger corporation, improving production efficiency, leveraging synergies and enabling growth.

CEO Robin Laik said the businesses hold a unique position in the UK and that both “have strong growth potential and are an ideal match for [Mutares’] ongoing operations.”

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Under commercial collaboration agreements made with Knorr-Bremse, the businesses will be the preferred integration and installation partners of Knorr-Bremse.

Knorr-Bremse said these agreements will ensure a “seamless transition period for employees and suppliers”.

The takeover includes Knorr-Bremse RailServices sites in Wolverton and Springburn as well as the Kiepe Electric facilities in Birmingham.

Knorr-Bremse RailServices specialises in vehicle overhaul and refurbishment as well as modernisation, upgrading, incident repairs and wheelset overhaul.

At its two sites in Wolverton and Springburn, Knorr-Bremse RailServices employs around 600 members of staff.

Kiepe Electric, part of the Knorr-Bremse Group since January 2017, is a globally active supplier of electrical systems to leading rail vehicle manufacturers. In the UK, it operates from Birmingham with a headcount of approximately 100.

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