DSV Acquires DB Schenker, Becoming a Leader in Global Logistics Services
DSV has signed an agreement to acquire DB Schenker from its owner, Deutsche Bahn. This acquisition will elevate DSV to the same level as Kuehne & Nagel (K&N), DHL, and Sinotrans in the top 50 global freight forwarders rankings by Armstrong & Associates (based on TEU shipping volumes). K&N and Sinotrans shipped 4.3 million TEU in 2023, and the combined volume of DSV and Schenker is also 4.3 million TEU. Each of these companies will handle about 2.5% of the world’s container volume!
Considering DSV’s total revenue after acquiring DB Schenker, DSV will rise to become the number one logistics company in the world.
Key figures in the deal include:
- Enterprise Value = €14.3 billion
- Enterprise Value to Annual Revenue (EV/LTM Revenue) = 0.77x
- Enterprise Value to EBIT (EV/LTM EBIT) = 14.0x
DSV will raise €4-5 billion in capital and additional borrowing, with the deal expected to be completed by 2025.
DSV outbid other contenders, including Maersk, a fellow national competitor that expressed interest earlier this year. Other bidders mentioned at the time included DP World, Bahri, UPS, and financial investors.
DSV stated that the combined company will enhance competitiveness and create opportunities to access new markets. The merged organization will have approximately 147,000 employees in over 90 countries.
Deutsche Bahn stated that the deal, which includes job protection in Germany, will remain in effect for two years after the transaction is finalized. Integration planning will take place between the signing and closing of the transaction, and both DSV and Schenker will continue operating independently until the deal is finalized.
Jens H. Lund, Group CEO of DSV, said, “Combining Schenker’s capabilities and expertise with our existing network will enhance our competitiveness across all three divisions: Air & Sea, Road, and Solutions. In addition to strengthening our commercial platform across DSV, this acquisition will allow us to provide our customers with higher service levels, seamless and innovative solutions, and greater supply chain flexibility.”
Jochen Thewes, CEO of Schenker, added, “The past few years have been the most successful in our company’s history, and we have proven that DB Schenker is ready for the future… Together with DSV, our goal is to transform the industry and create a truly global market leader with strong roots in Europe, to the benefit of our employees and customers.”
Richard Lutz, CEO of Deutsche Bahn, said, “Selling DB Schenker to DSV is the largest transaction in DB’s history and offers clear growth opportunities for our logistics subsidiary. It was crucial for us to find a strong partner for Schenker and a long-term home for its employees.”
Source: DSV Investor Presentation
Seatrade Maritime
.
Getting tired finding the right freight agent from Thailand?
Try ZUPPORTS Online Freight to find your right partners!!🚀🚀🚀
For more information, register at https://zupports.co/en/regis
.
Following us via LinkedIn: https://www.linkedin.com/company/zupports
