DSV completes €14.3 billion deal, DB Schenker is history

DSV completed the previously announced agreement to acquire 100 percent of the global freight forwarding and contract logistics business DB Schenker operated by Schenker AG and its affiliates (Schenker) in an all-cash transaction.

The transaction between DSV and Deutsche Bahn has an enterprise value of approximately DKK 106.7 billion (approximately €14.3 billion), says an official release from DSV.

"DSV has a long track-record of successfully integrating acquired companies as an integral part of the company’s growth strategy. With the acquisition of Schenker, we are establishing the foundation for future sustainable growth by creating a world-leading player within the transport and logistics industry to the benefit of our customers. DSV and Schenker are an excellent strategic match due to similarities in business models, services and strategies, and the combined company will benefit from strong customer relationships, industry vertical expertise, an agile global network and service offerings, combined with operational synergies."

Based on the published full-year 2024 financials for DSV and Schenker, the combined company had a pro-forma revenue of approximately DKK 310 billion (€40.3 billion) and a total workforce of close to 160,000 employees in more than 90 countries, the release added.

Schenker will be included in the consolidated financial statements of DSV from May 1, 2025. "Based on preliminary estimates, annual synergies are estimated in the level of DKK nine billion at the end of 2028 when the majority of the integration is expected to be complete. The synergies relate to the consolidation of operations, logistics facilities in road and solutions, back-office functions, finance and IT infrastructure."

DSV successfully raised approximately DKK 75 billion (€10 billion) through an evenly split combination of equity and bond issuances in October 2024 to partially finance the acquisition of Schenker, the release added.

Jens H. Lund, Group CEO, DSV says: "With the completion of the acquisition of Schenker, we have reached a milestone in the history of DSV. We have been looking forward to completing the transaction, and I am excited to welcome our new colleagues to the DSV organisation. With this acquisition, we become a world-leading player in global transport and logistics at a time where global supply chains are more in focus than ever before and our customers need a reliable and agile global network of services and products. By combining the two companies, we will create a unique flexible platform for long-term financial growth to the benefit of our customers, employees, shareholders and other stakeholders."

Outlook raised for 2025
Following completion of the Schenker acquisition, the preliminary expected impact from the acquisition is included in DSV’s full-year upgraded outlook for 2025 with EBIT before special items expected to be in the range of DKK 19.5-21.5 billion (previously DKK 15.5-17.5 billion). "The upgrade is entirely related to the expected Schenker impact as the underlying guidance for DSV stand-alone is unchanged.

"The current geopolitical landscape, including the Red Sea situation, macroeconomic factors and the global trading environment, particularly potential demand risks arising from the announced trade tariffs, remain uncertain, and unforeseen changes may impact our financial results. We continue to monitor activity across our organisation, and we will adjust capacity and our cost base if needed."

DSV changes executive team
The Board of Directors of DSV plans to nominate Jochen Thewes, CEO, DB Schenker, for election to the Board at an extraordinary general meeting following the completion of the acquisition.

"After the completion of the acquisition, the DSV Group Executive Committee will consist of:

Jens H. Lund, Group CEO (Executive Board)

Michael Ebbe, Group CFO (Executive Board)

Brian Ejsing, Group COO (Executive Board)

Frank Sobotka, CEO, Air & Sea

Helmut Schweighofer, CEO, Road

Albert-Derk Bruin, CEO, Contract Logistics

Vishal Sharma, Group CCO

Jesper Riis, Group CIO

Saskia Blochberger, Group CPO; and

Henrik Kjelgaard, Senior Executive Vice President, Corporate Development."