Bombardier Transportation Acquisition, Valuation, Funding & Investors

Bombardier Transportation was acquired by Alstom for $7.9B in February 2020, a 1.0x multiple on $8.1B of revenue.

Bombardier Transportation acquisition price

$7.9B

Acquired by Alstom · Feb 2020

Bombardier Transportation revenue at acquisition

$8.1B

Last twelve months · Feb 2020

Bombardier Transportation revenue multiple at acquisition

1.0x

EV/Revenue · Feb 2020

Cumulative funding Bombardier Transportation raised

$1.5B

across 1 funding round

Bombardier Transportation Overview

About Bombardier Transportation

Bombardier Transportation was a rail equipment manufacturer and the rail division of Bombardier Inc., established in 1974 after Bombardier won a large order for subway cars for the city of Montreal. It designed and built rail vehicles, including metro cars, trams, regional and high-speed trains and locomotives, and supplied signalling and services to railway operators and public transport authorities. It became a major European rail manufacturer through the acquisition of Adtranz in 2001, after which its head office moved to Europe, with its headquarters in Berlin. Revenue came from vehicle and systems sales and from long-term service and maintenance contracts. Bombardier sold a 30% stake in the division to the Caisse de depot et placement du Quebec in 2016. Alstom acquired the business in January 2021.


Founded

1974

HQ

GermanyBerlin

Status

Acquired

Customer focus

B2B

Revenue model

Product sales

Revenue

$8.1B (Feb 2020)

Valuation

$5B (Nov 2015)

Bombardier Transportation Acquisition

Bombardier Transportation was acquired by Alstom for $7.9B on 18 February 2020.

The acquisition price implies a 1.0x revenue multiple on $8.1B of revenue.

Before the acquisition Bombardier Transportation had raised $1.5B across 1 funding round.

Alstom agreed to acquire 100% of Bombardier Transportation, the rail division of Bombardier Inc., in a transaction first announced in February 2020 through a memorandum of understanding and confirmed by a definitive sale and purchase agreement in September 2020. The sellers were Bombardier Inc. and the Quebec investor La Caisse (CDPQ), which held 30% of the division. The agreement valued Bombardier Transportation at an enterprise value of EUR 7.15 billion (USD 8.4 billion), EUR 300 million below the February memorandum of understanding, with the price paid in a mix of cash and new Alstom shares. CDPQ reinvested its cash proceeds in Alstom and became its largest shareholder. Alstom said the combination would form a group with a backlog of around EUR 75 billion and revenue of around EUR 15.5 billion, and it targeted EUR 400 million of annual run-rate cost synergies. The acquisition was completed on 29 January 2021. Bombardier Transportation, established in 1974 and headquartered in Berlin, makes rail vehicles and signalling and reported sales of EUR 7.4 billion and a backlog of EUR 32 billion as of December 2019.

Bombardier Transportation acquisition details
AcquirerDateTypePriceEV/Revenue
18 Feb 2020Strategic M&A$7.9B1.0x

Sources: alstom.com, bombardier.com, alstom.com

Bombardier Transportation Valuation

Bombardier Transportation is currently valued at $5B, based on its undisclosed-stage round in November 2015. Read the announcement ↗

The $1.5B round included La Caisse.

Bombardier Transportation valuation by funding round

Bombardier Transportation valuation by funding round
DateStageValuation
Nov 2015Undisclosed stage$5B

Bombardier Transportation Funding History

Bombardier Transportation has raised a total of $1.5B across 1 funding round.

Bombardier Transportation funding rounds

Bombardier Transportation funding rounds
DateStageInvestorsRaisedValuationDeal Summary
Nov 2015Undisclosed stageLa Caisse$1.5B$5BThe Caisse de depot et placement du Quebec (CDPQ) agreed to acquire a 30% minority stake in BT Holdco, the newly created holding company for Bombardier Transportation, for USD 1.5 billion, as announced by Bombardier Inc. in November 2015. The investment was structured as convertible shares equal to 30% of the common equity, with annual adjustments tied to performance, and Bombardier issued CDPQ warrants over 105,851,872 of its Class B shares alongside it. The price implies an equity value of about USD 5 billion for the rail division. Bombardier said the proceeds would be used for general corporate purposes and that the deal strengthened its financial position without adding debt. The sale closed on 11 February 2016 and Bombardier kept control of the division. CDPQ later sold its stake to Alstom as part of the 2021 acquisition of the business. Bombardier Transportation, established in 1974, makes rail vehicles and signalling and is headquartered in Berlin.

Who has invested in Bombardier Transportation?

1 investor has backed Bombardier Transportation across its funding rounds, including La Caisse.


Bombardier Transportation Investors

Investors in Bombardier Transportation by funding rounds participated
InvestorHQRoundsRoleFirst check

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Acquisitions by Bombardier Transportation

Bombardier Transportation has acquired 1 company to date.

Last acquisition by Bombardier Transportation was on August 1st 2000. Bombardier Transportation acquired Adtranz for $516M.


Latest Acquisitions by Bombardier Transportation

Adtranz
Description
Adtranz was a rail transportation equipment manufacturer headquartered in Berlin, Germany. Legally known as ABB Daimler-Benz Transportation, it was created in 1996 as a joint venture between ABB and Daimler-Benz that combined their rail equipment manufacturing operations. The company built rail vehicles and supplied railway electrification and signalling, with facilities concentrated in Europe and the United States. ABB and Daimler-Benz owned it until 1999, after which DaimlerChrysler held it as DaimlerChrysler Rail Systems. Its customers were railway operators and public transport authorities that bought rolling stock and related systems. Bombardier acquired Adtranz in 2001, and its operations were folded into Bombardier Transportation, which moved its head office to Europe after the purchase.
HQ CountryGermany
HQ City
Berlin
Deal Date1 Aug 2000
Valuation$516M
EV/Revenue
EV/EBITDA

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Bombardier Transportation Competitors

Bombardier Transportation competitors include listed companies like Zhuzhou CRRC Times, Alstom, CRRC Corp. and Newag, and private ones like Amsted-Maxion Cruzeiro and Duroc Rail.

Public and private companies comparable to Bombardier Transportation
CompanyHQStatusRevenueEBITDAValuationRevenue Multiple
Zhuzhou CRRC TimesChinaChinaPublicly listed$4.3B$715M$11B2.5x
AlstomFranceFrancePublicly listed$21B$1.4B$5.6B0.4x
CRRC Corp.ChinaChinaPublicly listed$41B$4.2B$27B0.7x
NewagPolandPolandPublicly listed$608M$125M$1B1.6x
Amsted-Maxion CruzeiroBrazilCruzeiroPrivate--$51M-
Duroc RailSwedenLuleåPrivate$16M$3M$16M1.0x

Bombardier Transportation Public Comps

Bombardier Transportation is no longer listed, but its public comps include China Railway Signal, JR West, Hyundai Rotem, Tokyu, Alstom, Glarun Technology, Tokyo Metro, Rumo, Zhuzhou CRRC Times and Indian Railway Finance.

Last FYEV/RevenueEV/EBITDA
RevenueEBITDALast FYLTM2027ELast FYLTM2027E
China Railway Signal$5.2B$747M1.2x1.2x8.7x8.2x
JR West$12B$2.4B1.6x1.6x7.8x7.9x
Hyundai Rotem$4.3B$768M0.9x0.8x5.1x5.1x
Tokyu$6.9B$1.3B2.1x2.1x11.2x11.7x
Alstom$21B$1.4B0.4x0.4x5.5x7.3x
Glarun Technology$504M$119M10.6x10.5x45.0x-
Tokyo Metro$2.7B$1.1B4.4x4.3x10.8x11.6x
Rumo$2.5B$1.1B3.5x3.3x8.1x6.0x

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Common questions about Bombardier Transportation

When was Bombardier Transportation founded?Bombardier Transportation was founded in 1974.
Where is Bombardier Transportation headquartered?Bombardier Transportation is headquartered in Berlin, Germany.
Is Bombardier Transportation publicly listed?No, Bombardier Transportation was acquired by Alstom in February 2020.
Who acquired Bombardier Transportation?Bombardier Transportation was acquired by Alstom in February 2020.
How much was Bombardier Transportation acquired for?Bombardier Transportation was acquired for $7.9B in February 2020, a 1.0x revenue multiple.
What is Bombardier Transportation's valuation?Bombardier Transportation was last valued at $5B in its undisclosed-stage round in November 2015.
How much funding has Bombardier Transportation raised?Bombardier Transportation has raised $1.5B across 1 funding round.
What was Bombardier Transportation's last funding round?Bombardier Transportation's last funding round was a $1.5B undisclosed-stage round in November 2015.
Who are Bombardier Transportation's investors?Bombardier Transportation's investors include La Caisse.
Which companies are comparable to Bombardier Transportation?Companies comparable to Bombardier Transportation include Zhuzhou CRRC Times, Alstom, CRRC Corp., Newag, Amsted-Maxion Cruzeiro and Duroc Rail.
How many companies has Bombardier Transportation acquired?Bombardier Transportation has acquired 1 company, including Adtranz.
What was the largest acquisition by Bombardier Transportation?The $516M acquisition of Adtranz in August 2000 is the largest acquisition Bombardier Transportation has made to date.

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