Danish logistics firm DSV has reached a deal to acquire Schenker, the logistics unit of German state railway Deutsche Bahn. The deal, valued at €14.3bn, with €11.3bn of equity, was signed on Friday. This acquisition marks the largest sale in DB’s history and will establish DSV as the world’s largest logistics company. The purchase will be funded through a share sale of up to €5bn and debt financing. The combined revenue of DSV and Schenker will be DKK 293bn, with a workforce of approximately 147,000 employees across more than 90 countries, resulting in a combined revenue of around €39.26bn.
Deutsche Bahn CEO Richard Lutz expressed the importance of finding a strong partner for Schenker and ensuring a prosperous future for its employees. DB decided to sell Schenker, its most profitable division, in an effort to invest in its domestic passenger business and reduce its debt. Despite private equity firm CVC Capital Partners bidding for Schenker and offering to allow DB to retain a 24.9% stake, DSV emerged as the chosen buyer. This decision may disappoint some, as the offer from CVC was allegedly lower, but the powerful Verdi union supported CVC’s bid due to concerns of job cuts. DSV’s CFO Michael Ebbe stated that the company plans to cut between 1,600 and 1,900 positions out of Schenker’s German workforce of 15,000. However, the merged firm intends to increase employee numbers over a five-year period, surpassing current German staff levels. DSV also plans to allocate an additional €10m in compensation to satisfy unions.
The deal is slated to close in the second quarter of 2025, pending regulatory approval from Deutsche Bahn’s supervisory board and the German transport ministry, expected to be granted in the coming weeks. Both DSV and Schenker anticipate a seamless integration process. The acquisition of Schenker by DSV is seen as a significant move that will reshape the global logistics industry and cement DSV’s position as a key player. DSV’s acquisition of Schenker is expected to yield long-term benefits for both companies, with clear growth prospects, expanded capabilities, and enhanced service offerings for customers. The combined expertise, resources, and global presence of DSV and Schenker will enable the merged entity to capitalize on opportunities for innovation, efficiency, and market leadership. As the world’s largest logistics company, DSV will be in a strong position to drive sustainable growth, deliver value to stakeholders, and achieve long-term success.
