DSV is going to create a global logistics giant with Schenker takeover. Danish transport and logistics company DSV has announced its largest purchase to date, finalizing an agreement to acquire Schenker from Deutsche Bahn.
The purchase aims to improve DSV’s global network, knowledge, and competitiveness, benefiting workers, customers, and investors. The deal is valued at €14.3 billion ($15.8 billion).
The company revealed that various central functions will stay in Germany, including at the Schenker location in Essen. DSV expects to grow in Germany and plans €1 billion ($1.1 billion) investments in Germany in the next three to five years.
Jens H. Lund, Group CEO, DSV, said: “With the acquisition we bring together two strong companies, creating a world-leading transport and logistics powerhouse that will benefit our employees, customers and shareholders.”
The acquisition is scheduled to be finalized in 2025 if all regulatory permissions are obtained.
Transaction overview
- Enterprise value of EUR 14.3 billion (approx. DKK 107 billion) and equity value of EUR 11 billion (approx. DKK 82 billion).
- At completion, DSV will acquire 100% of Schenker AG, including all its affiliates in an all-cash transaction.
- Transaction multiples correspond to an EV/Revenue of 0.77x and an EV/EBIT of 14.0x based on the last twelve months financials ending June 2024.
- DSV expects to finance the transaction during the next 12 months through a combination of equity financing of around EUR 4-5 billion via an accelerated bookbuilding without pre-emption rights for existing shareholders and debt financing, as we remain committed to maintain our current credit ratings.
- DSV has obtained committed financing facilities from BNP Paribas, Danske Bank, HSBC and Nordea for the transaction.
- The transaction is subject to approval by the Supervisory Board of Deutsche Bahn and by the German Federal Ministry for Digital and Transport (Bundesministrerium für Digitales und Verkehr) in the coming weeks, as well as customary regulatory approvals. Completion of the transaction is expected in Q2 2025. DSV will make customary disclosures upon satisfaction of outstanding conditions. Until the closing of the transaction, DSV and Schenker remain two separate companies conducting business as usual.
- DSV has entered social undertakings in relation to the employees of Schenker in Germany, which will apply for two years after closing.
- DSV’s current share buyback programme of up to DKK 1.5 billion initiated on 24 July 2024 will be discontinued with immediate effect.
“By adding Schenker’s competencies and expertise to our existing network, we improve our competitiveness across all three divisions: Air & Sea, Road, and Solutions. As well as enhancing our commercial platform across DSV, the acquisition will provide our customers with even higher service levels, innovative and seamless solutions and flexibility to their supply chains.”
Jochen Thewes, CEO, Schenker, stated: “Together with DSV, our goal is to transform the industry and build a truly global market leader with joint European roots for the best of our employees and our customers.”
Sources: porttechnology.org; investor.dsv.com