DSV buys Schenker for €14 billion

DSV adds another entry in its rich history of acquisitions. It announced its largest transaction to date, the purchase of Schenker from Deutsche Bahn. The value of the acquisition is €14.3 billion (almost 360 billion kronor), DSV said. The company will finance the purchase with €4-5 billion in equity and debt.

Together, DSV and Schenker will have expected revenues of approximately EUR 39.3 billion (as of 2023) and a workforce of approximately 147,000 employees in more than 90 countries.

The acquisition strengthens DSV's position in Germany, where various central functions will remain, including Schenker's presence in Essen. DSV plans investments of €1 billion for the German market over the next 3-5 years.

"With this acquisition, we are combining two strong companies to create a world-leading transport and logistics giant, which will benefit our employees, customers and shareholders," commented Jens H. Lund, CEO of the DSV Group, on the acquisition announcement.

Richard Lutz, CEO of Deutsche Bahn, added: "The sale of DB Schenker to DSV is the largest transaction in DB's history and provides our logistics subsidiary with clear growth prospects. It was important for us to find a strong partner for Schenker and a long-term home for the company's employees."

DSV informed that the social commitments for Schenker employees in Germany will apply for up to two years after the agreement is concluded. Collective agreements and individual terms and conditions of employment for German employees in force at the date of the agreement will generally be maintained for two years. DSV will apply the German principles of codetermination.

The deal must be approved by Deutsche Bahn's supervisory board and the German Federal Ministry for Digitalisation and Transport, which is expected in the coming weeks. In addition, the acquisition is conditional on obtaining regulatory approvals, which are expected to be secured in Q2 2025.

DSV is renowned for its policy of acquisitions and mergers, of which it has completed forty in its history. In 1976, the company was formed through an agreement between nine independent trucking companies. In 1989, the acquisition of two competing export companies, Borup Autotransport and Hammerbro, followed by Samson Transport in 1997 and Svex Group in 1999. In 2000, the company bought DFDS Dan Transport Group, five years later J. H. Bachmann was absorbed and in 2006 Frans Maas was added. In 2008, DSV acquired ABX Logistics, four years later the Czech company Čechofracht and in 2016 UTi Worldwide joined. The acquisition of the logistics provider Panalpina Welttransport in 2019 elevated DSV to the position of global logistics top four. In 2021, DSV is acquiring Agility Logistics.

Source: Logistics Systems.