As expected, Alstom has sold its Power Conversion business to a management team, backed by Barclays Private Equity France, for an undisclosed sum.

The sale was part of an asset divestment programme that the European Commission demanded from Alstom before approving a financial rescue package, arranged by the French government in 2004.

The division specialises in equipment for converting electrical energy into mechanical energy - including motors, drives, controls and generators. The division has sites in France, the UK, Germany, the US and Brazil.

Alstom Power Conversion`s sales in the past year exceeded €500m. In the first half of the financial year 2005/06, its orders rose by 7% to €321m compared to the previous year, with most of the new business coming from Asia and Russia.

The business focuses on four main markets: marine and offshore, particularly for propulsion applications; metal processing; power generation; and oil and gas.