German-based company Mutares has agreed to acquire Knorr-Bremse RailServices and Kiepe Electric from Knorr-Bremse for an undisclosed sum.

The deal features a complete takeover of Knorr-Bremse RailServices, which currently looks after Knorr-Bremse’s vehicle services business in the UK, and Kiepe Electric, which supplies electrical systems to rail vehicle and bus manufacturers.

The deal covers the Knorr-Bremse RailServices sites in Wolverton and Springburn, as well as Kiepe Electric’s facilities in Birmingham. It is expected to be completed within this year.

Upon completion, Mutares plans to rename the newly acquired businesses in line with the company’s strategic approach.

“We are continuing our ongoing efforts to realign our strategic focus on core competencies as a key supplier for the railway industry, offering subsystems, components and all related services.”

Knorr-Bremse executive board chairman Klaus Deller said: “With this step, we are continuing our ongoing efforts to realign our strategic focus on core competencies as a key supplier for the railway industry, offering subsystems, components and all related services.”

The newly agreed deal includes a set of commercial collaboration agreements to continue to make the company’s RailServices and Kiepe Electric as preferred integration and installation partners of Knorr-Bremse.

Such agreements are also expected to ensure a smooth transition period for employees and suppliers.

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Mutares CEO Robin Laik said: “RailServices and Kiepe Electric hold a unique market position in the UK, providing excellent expert services and know-how for the railway industry.

“Both companies have strong growth potential and are an ideal match for our ongoing operations. Mutares possesses expert knowledge in how to utilise the strong potential of both entities and allow profitable growth for Knorr-Bremse RailServices UK and Kiepe Electric UK.”