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DSV signed an agreement to acquire Schenker from Deutsche Bahn in a transaction worth EUR 14.3 billion
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DSV and Schenker combined will have an expected pro forma revenue of approximately EUR 39.3 billion
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Joint workforce is around 147,000 employees in more than 90 countries
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Various central functions will stay in Germany, including at the Schenker location in Essen
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DSV expects to grow in Germany and plans EUR 1 billion investments in the next 3 to 5 years
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The transaction will be financed through a combination of equity and debt financing
DSV has signed an agreement to acquire Schenker from Deutsche Bahn (DB) in a transaction worth EUR 14.3 billion (US$15.86 billion), making it the world’s biggest logistics company.
“The sale of DB Schenker to DSV marks the largest transaction in DB’s history and provides our logistics subsidiary with clear growth prospects. It has been important for us to find a strong partner for Schenker and a long-term home for the employees of the company,” said DB chief executive officer Richard Lutz in a September 13 statement.
DSV and Schenker combined will have an expected pro forma revenue of approximately EUR 39.3 billion (based on 2023 numbers) and a combined workforce of approximately 147,000 employees in more than 90 countries.
“By adding Schenker’s competencies and expertise to our existing network, we improve our competitiveness across all three divisions: Air & Sea, Road, and Solutions,” said DSV group CEO Jens Lund.
“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,” Lund added.
With the acquisition, Germany will be a key market for DSV with a substantial impact on the future organization.
Various central functions will stay in Germany, including at the Schenker location in Essen.
DSV expects to grow in Germany and plans EUR 1 billion investments in Germany in the next 3 to 5 years.
These investments are expected to contribute to long-term growth and job creation, as well as promote modern and attractive workplaces, DSV said.
It is anticipated that five years from now, the combined organization will have more employees in Germany than Schenker and DSV have today.
“DB Schenker is one of the most powerful and innovative teams in transportation and logistics with more than 150 years of experience. The recent years have been the most successful in our company’s history and we have proven that DB Schenker is fit for the future,” said Schenker CEO Jochen Thewes.
“We are excited about the future prospects of the combined business. 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,” Thewes added.
Integration planning
For its part, DSV said it will commit to a smooth transition that prioritizes the continuity of service excellence for all Schenker customers and with careful consideration for employees and stakeholders.
“DSV recognizes the importance of combining the operations seamlessly and is dedicated to upholding the high standards both companies are known for,” the Danish transport services company stated.
The integration planning will be a joint effort between DSV and Schenker and the specific plans will be developed between the signing and closing of the transaction.
As part of the agreement, DSV has issued social undertakings for employees in Schenker in Germany, which apply until two years after closing.
Collective agreements and individual employment conditions for German employees on the closing date will generally be retained in the two-year period.
The deal is conditional on approvals by the DB Supervisory Board and by the German Federal Ministry for Digital and Transport, which are expected in the coming weeks; and on obtaining customary regulatory clearances, expected to be secured in Q2 2025.
The transaction will be financed through a combination of equity financing of around EUR 4 to 5 billion and debt financing, DSV said.
Until the closing of the transaction, DSV and Schenker remain two separate entities conducting business as usual.
