SCHENKER acquired by DSV

DSV signed an agreement on 13 September 2024 to acquire 100% of Schenker and its subsidiaries from Deutsche Bahn in an all-cash transaction valuing the German logistics group at an enterprise value of €14.3B, an EV/revenue multiple of 0.8x. Deutsche Bahn had opened the sale of its logistics subsidiary in December 2023 under EU rules, and DSV won with the offer judged most economically advantageous. The proceeds were to stay within Deutsche Bahn to reduce its debt. The combination would create a group with revenue of €18.5B on a pro-forma 2023 basis and around 147,000 employees in more than 90 countries, giving DSV a far larger presence in Germany and across European road transport. DSV committed to invest in Germany over the following years, to keep central functions including at Schenker’s Essen site, to respect German co-determination and the existing collective and company agreements, and to social undertakings covering Schenker’s German employees for two years after completion. It expected the deal to add to adjusted diluted earnings per share in the second year after closing, and aimed to bring the combined group’s operating margin up to its own levels within three years. Completion was expected in the second quarter of 2025, subject to approval by Deutsche Bahn’s supervisory board, the German Federal Ministry for Digital and Transport, and competition authorities. DSV secured committed financing from BNP Paribas, Danske Bank, HSBC and Nordea, and planned to fund the purchase through a combination of debt and an accelerated equity placement without pre-emption rights, while keeping its credit ratings. The two companies continued to operate separately until closing.