Schenker was owned by the German railways, Deutsche Bahn, and for years was the backbone of a successful logistics system based on the two main ports, Bremen and Hamburg, the railways and their logistics branch. For years now there has been talk of a gradual loss of efficiency of the German logistics systemto the point of hypothesizing a reopening of the competitive game with the Mediterranean ports, Italian ports included, which had found an invincible enemy in the well-oiled, competitive and also somewhat favored by the Antitrust, German logistics system.
The value of the Schenker acquisition is 14.3 billion euros. Dsv and Schenker together will have expected pro forma sales of approximately 39.3 billion euros, based on 2023 results, and a combined workforce of approximately 147,000 employees in more than 90 countries. The acquisition strengthens Dsv’s platform for “the growth and development of a more sustainable and digital transport and logistics industry,” a statement said. With this acquisition, Germany will become a key market for Dsv. Several central functions will remain in Germany, including at Schenker’s headquarters in Essen. Reassuring statement, but the facts speak a different language. German logistics giant loses ground as industry and it also loses that ability to colonize other European markets that it had demonstrated for years.
As mentioned, Schenker’s corporate cost was set at 14.3 billion euros, with an equity value of 11 billion euros. At the end of the transaction, DSV to acquire 100% of Schenker AGincluding all its affiliates, in an all-cash transaction. DSV plans to finance the transaction over the next twelve months through equity sales of approximately €4-5 billion. The pre-IPO phase will be accelerated without pre-emptive rights for existing shareholders and debt financing, in order to maintain the current credit ratings. For the transaction, DSV has also obtained tied financing facilities from BNP Paribas, Danske Bank, HSBC and Nordea.
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DSV has also signed social commitments to Schenker employees in Germany to keep them employed for two years after the closure. DSV supplies and operates supply chain and transportation solutions for thousands of companies every day, from small family-run businesses to large multinationals, based on a global network and local presence. About 74,000 employees in over 80 countries. In 2023, the company recorded a turnover of over 20 billion euros and an EBIT of 2.3 billion.
The transaction will be subject to approval by Deutsche Bahn’s Supervisory Board and the German Federal Ministry for Digital Affairs and Transport (Bundesministrerium für Digitales und Verkehr) in the coming weeks, as well as the customary legislative steps.. The completion of the operation is expected for the second quarter of 2025. Until the closing of the sale, DSV and Schenker will remain two separate companies and will continue their usual business activities..
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