Balfour Beatty sells stake in Signalling Solutions to Alstom

Balfour Beatty sells stake in Signalling Solutions to Alstom

Alstom has become the sole owner of its Signalling Solutions Limited (SSL) joint venture after Balfour Beatty confirmed the sale of its half of the business.

Alstom announced its acquisition of Balfour Beatty’s 50% stake in the Signalling Solutions Ltd joint venture on May 28, giving it sole ownership. The price was not disclosed. Alstom said the business would ‘continue to trade as SSL for the foreseeable future.’

In a bid to restructure the company, Balfour Beatty has already sold off a number of assets that it has described as not being part of its core services.

The 50:50 joint venture was established by the two companies in 2007 to supply signalling systems in the UK and Ireland. SSL is now one of the major UK signalling suppliers, with 540 staff based at four main locations offering a range of services from project design to full delivery.

A Balfour Beatty spokesperson said: “The sale of our stake in the SSL joint venture is further evidence of the progress we are making as we deliver our Build to Last programme, both in simplifying the Group and maintaining a strong balance sheet through self-help.

“Exiting SSL will allow our rail business to focus fully on its core expert strengths.” As well as holding a number of regional signalling contracts with Network Rail, SSL also has a framework agreement to develop European Train Control System (ETCS level 2). Terence Watson, President of Alstom UK, added: “Alstom will use this fantastic opportunity to strengthen its activities in UK- which include rolling stock, infrastructure, electrification and signalling – and contribute to build a better railway.

‘This acquisition is part of Alstom’s signalling growth strategy and enables the company to take full benefit from its worldwide resources and capabilities’, said Pascal Cléré, Senior Vice-President of Alstom Transport’s signalling business. ‘SSL enriches Alstom’s portfolio, both from a geographical and product standpoint.’

“The company is looking forward to further collaborating with Network Rail, Crossrail, HS2 and the British supply chain in delivering the state-of-the-art signalling technologies that will deliver the railway’s digital future.”

Balfour Beatty further said that the sale of its stake in SSL was ‘further evidence of the progress we are making as we deliver our Build to Last programme, both in simplifying the group and maintaining a strong balance sheet through self-help.  Exiting SSL will allow our rail business to focus fully on its core expert strengths.’