French brake pad manufacturer Carbone Lorraine sold its rail and motorcycle braking business to Faiveley Transport, which will continue to run the business at Carbone Lorraine's brake factory in a Paris suburb.
The rail and motorcycle braking business generates annual sales of €17 million ($26.5 million) and has 80 employees. The Faiveley group agreed to a price of €26 million ($40.5 million).
Faiveley Transport is one company within the multinational Faiveley Group, controlled by Faiveley SA and Sagard. The Faiveley Group is one of the world?s leading suppliers of railway systems and services. The company operates six major product lines: air conditioning, electro-mechanics, braking systems, doors, couplers and customer services.
Carbone Lorraine says the rail and motorcycle brake business has experienced growth in the replacement market in recent years, yet admits the business environment has changed recently "owing to the ramp-up in the position held by OEMs, which have been actively moving into the friction materials market."
Carbone Lorraine says the disposal of the rail and motorcycle braking business is designed to sharpen the company's focus on its core business, boost financial resources and facilitate execution of its future growth strategies.