Knorr-Bremse agreed to sell its global heating, ventilation, and air conditioning business unit to OpenGate Capital in a move to focus more sharply on its core technological competencies.

Financial details weren't disclosed.

The HVAC unit, Merak, serves the rail industry and is expected to generate annual revenue of about 360 million euros ($410 million), the German braking system company said late Tuesday.

Knorr-Bremse expects the transaction to have a positive impact on the operating margin on earnings before interest and taxes of its Knorr-Bremse Rail unit, and thus the group.

Merak is based in Getafe, Spain. In the transaction, private equity firm OpenGate will acquire all of Merak's business activities and its approximately 1,500 employees.

The sale of Merak should close by year-end, Knorr-Bremse said.