Alstom has agreed to sell its North American conventional signaling business to Knorr-Bremse AG for a purchase price of about $671 million.

The sale marks a milestone in Alstom’s comprehesnive company action plan announced Nov. 15, 2023, Alstom officials said in a press release.

Alstom will provide the details of its plan to maintain a solid and sustainable investment grade rating and of its 2 billion-euro ($2.1 billion) deleveraging target on May 8, they said.

The transaction concerns the conventional part of the North American signaling business, which generated revenue of about $320 million in fiscal-year 2023.

Alstom will continue to serve the North American signaling market in different segments, including communications-based train control and European train control systems, company officials said.