GERMANY: Knorr-Bremse has agreed to sell its global rail HVAC business Merak to OpenGate Capital, transferring around 1,500 employees in a transaction expected to close by the end of 2026.

Roof-mounted air-conditioning units on a JR East KiHa 37 railcar.
Roof-mounted air-conditioning units on a JR East KiHa 37 railcar; illustrative image, not Merak equipment or the current transaction. Photo: Mamo / Wikimedia Commons, public domain.

Knorr-Bremse announced the agreement on July 28, describing the divestment as part of its BOOST portfolio strategy. OpenGate Capital said the parties signed a definitive agreement and confirmed that the financial terms were not disclosed.

Merak sale covers global operations and workforce

The transaction covers all Merak business activities and approximately 1,500 employees, primarily located in Europe, North America, China and Australia. Merak is headquartered in Getafe, near Madrid.

Knorr-Bremse expects the unit to generate approximately €360 million in revenue during the 2026 financial year. That figure is the business’s revenue forecast, not the transaction price.

OpenGate identifies Merak facilities in Spain, Austria, Australia, the United States, China and India. The buyer says the operation spans original equipment, aftermarket services, spare parts, system modernisation and overhaul for rail vehicles.

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Closing remains subject to regulatory approvals

Completion is expected by the end of calendar year 2026, subject to customary closing conditions and regulatory approvals. Until those requirements are met, Merak remains within Knorr-Bremse.

The seller expects the divestment to improve the operating EBIT margin of its Rail division and, consequently, the group. Perella Weinberg served as Knorr-Bremse’s exclusive financial adviser.

Knorr-Bremse links the sale to its focus on core technologies, profitable growth and portfolio optimisation under BOOST. OpenGate intends to support Merak as a focused standalone company after completion.

What the Merak rail HVAC business supplies?

Knorr-Bremse’s product information describes Merak systems for new rolling stock and retrofits of existing fleets. The portfolio includes roof-mounted and underfloor units, compact equipment for passenger compartments and driver’s cabs, plus control systems and sensors.

The scope means the transaction covers more than the production of air-conditioning equipment: it also includes modernisation, spare-parts and service activities supporting HVAC systems over the life of rail vehicles.

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