Knorr-Bremse Signs Merak Rail HVAC Sale to OpenGate Capital

MUNICH – Knorr-Bremse has signed an agreement to sell its global rail air-conditioning division, Merak, to investment fund OpenGate Capital. The transaction covers all Merak operations and is expected to close by the end of 2026. Merak has projected revenue of approximately EUR 360 million for the 2026 financial year.

What Is the Full Scope of This Development?

The transaction transfers all Merak operations — engineering, production, and aftermarket service — to OpenGate Capital.

Merak, headquartered in Getafe near Madrid, supplies heating, ventilation, and air-conditioning systems for rolling stock. The division employs about 1,500 people, mainly in Europe, North America, China, and Australia, and supports rail operators and train manufacturers through new-vehicle supply, modernisation, maintenance, and technical services over the life cycle of rolling stock.

Key Development Data

Confirmed transaction data from the seller and acquirer is summarised below.

How Does This Compare to Industry Trends?

The Merak divestiture follows a clear industry pattern of railway companies prioritising margin over scale.

In Finland, VR lifted comparable operating profit by over 53% to €129.8 million in 2025 and grew comparable EBIT margin from 6.5% to 10.4%, even as total revenue declined 3.3% (Source: Rail Market, 2026). On the demand side, Alstom booked a record EUR 27.6 billion in orders for the fiscal year ended March 31, 2026, against EUR 19.8 billion a year earlier, which suggests rolling stock HVAC demand remains strong even as suppliers reposition their portfolios (Source: Alstom, 2026). Merak’s projected EUR 360 million in annual revenue is modest against that order flow, but its maintenance and modernisation base is recurring.

The purchase price, Merak’s standalone earnings, and the expected EBIT margin contribution were not disclosed. No independently verified transaction multiple for a rail HVAC supplier was publicly available at time of publication.

Editor’s Analysis

By selling Merak, Knorr-Bremse is narrowing its rail business to braking, entry systems, and digital services, where it sees higher recurring margins. OpenGate Capital inherits a global HVAC platform that can be scaled independently, and the timing aligns with Chinese high-speed rail investment that reached roughly 50,000 km in 2025, more than 70% of the global total (Source: Carbon Brief, 2025). Whether Merak can retain supplier relationships outside a large industrial group will determine the success of the deal.

FAQ

Q: Why is Knorr-Bremse selling Merak?
A: Knorr-Bremse is divesting Merak under its BOOST strategy to focus on core technologies and improve the operating EBIT margin of its rail division. Financial terms were not disclosed.

Q: When will the Merak sale be completed?
A: The transaction is expected to close by the end of 2026, subject to customary closing conditions and regulatory approvals. Merak has projected revenue of about EUR 360 million for the 2026 financial year.

Q: Will Merak’s customers and employees see immediate changes?
A: OpenGate Capital is acquiring all Merak business activities and approximately 1,500 employees, so operational continuity is the stated structure. Any change in contractual terms after closing has not been officially confirmed.