DSV completes acquisition of Schenker
- Matus Cigan
- May 4
- 4 min read
DSV A/S (“DSV”) completes acquisition of DB Schenker
DSV A/S (“DSV”) has completed the previously announced agreement with Deutsche Bahn AG (“Deutsche Bahn”) to acquire 100% of the global freight forwarding and contract logistics business DB Schenker, operated by Schenker AG and its affiliates (“Schenker”), in an all-cash transaction. Please refer to Announcement No. 1132 of 13 September 2024. The transaction carries an enterprise value of approximately DKK 106.7 billion (approximately EUR 14.3 billion).
DSV has a strong track record of successfully integrating acquired companies as part of its growth strategy. With the acquisition of Schenker, the company is laying the foundation for future sustainable growth and creating a world-leading transport and logistics provider to the benefit of its customers. DSV and Schenker are a strategic match, sharing similar business models, services, and strategies. The combined entity will benefit from strong customer relationships, industry-specific expertise, a flexible global network, and operational synergies.
Based on the published full-year 2024 financials for both DSV and Schenker, the combined company would have generated pro-forma revenue of approximately DKK 310 billion and employed nearly 160,000 people across more than 90 countries.
Jens H. Lund, Group CEO of DSV, commented:“With the completion of the acquisition of Schenker, DSV has reached a significant milestone in its history. The company has long anticipated this transaction and is pleased to welcome its new colleagues into the DSV organisation. This acquisition positions DSV as a world-leading player in global transport and logistics at a time when resilient supply chains are more important than ever. Customers will benefit from a reliable and agile global network of services. By combining the strengths of both companies, DSV is creating a unique, flexible platform for long-term financial growth benefiting customers, employees, shareholders, and other stakeholders.”
Transaction details and financial impact
DSV is acquiring 100% of Schenker and its affiliates in an all-cash transaction. The enterprise value is approximately DKK 106.7 billion (EUR 14.3 billion), and the equity value is approximately DKK 86.5 billion (EUR 11.6 billion). The transaction multiples correspond to 0.75x EV/revenue and 13.0x EV/EBIT based on Schenker’s full-year 2024 financials. Schenker will be included in DSV’s consolidated financial statements starting 1 May 2025. Based on preliminary estimates, annual synergies are expected to reach around DKK 9.0 billion by the end of 2028, as integration progresses across operations, logistics facilities (Road and Solutions), back-office functions, finance, and IT systems.
The transaction is expected to be EPS accretive (diluted and adjusted) no later than 2026. DSV continues to aim to raise the operating margins of the combined entity to match DSV’s levels within the respective business areas by 2028, based on a normalised 2024 EBIT baseline for Schenker of approximately DKK 6.0 billion (EUR 800 million).
Total transaction and integration costs are expected to be around DKK 11.0 billion and will be charged as special items during the integration period.
Due to this completion, DSV’s previously stated financial ambitions for 2026 are no longer applicable. Updated financial ambitions, reflecting the integration of Schenker, will be announced at a later stage.
Capital structure
In October 2024, DSV raised approximately DKK 75.0 billion (EUR 10.0 billion) through a balanced combination of equity and bond issuances to help finance the acquisition. The remaining portion is covered by existing cash reserves and committed credit facilities.
The company is maintaining its capital structure target of a financial gearing ratio (net interest-bearing debt including leasing liabilities to EBITDA before special items) below 2.0x. Following the transaction, the pro-forma gearing ratio is expected to be around 3.0x, with an ambition to return below 2.0x by the first half of 2027.
Governance
As stated in Announcement No. 1149 of 28 January 2025, DSV’s Board of Directors intends to nominate Schenker’s current CEO, Jochen Thewes, for election to DSV’s Board. A separate notice for an extraordinary general meeting is expected in the second half of 2025.
2025 Outlook
Following the transaction’s completion, DSV has updated its full-year 2025 guidance:
EBIT before special items is now expected between DKK 19.5–21.5 billion (previously DKK 15.5–17.5 billion), entirely due to the expected contribution from Schenker.
Minimal synergy impact on the 2025 profit and loss statement is expected.
Preliminary amortisation of purchase price allocations of around DKK 500 million is included in the outlook.
Special items related to restructuring and integration are estimated between DKK 2.0–2.5 billion.
The effective tax rate remains unchanged at approximately 24%.
These estimates are preliminary. The alignment of Schenker’s financials with DSV’s standards and definitions is ongoing.
Further updates on the integration will be shared in DSV’s H1 2025 Interim Financial Report, now scheduled for release on 31 July 2025 (postponed from 24 July 2025). More information and assumptions will be available in the Q1 2025 Interim Financial Report.
External factors
DSV continues to monitor global developments, including geopolitical tensions (such as the Red Sea crisis), macroeconomic trends, and the impact of announced trade tariffs. Any unforeseen changes may affect financial outcomes. The company remains committed to adjusting capacity and costs in response to market conditions.
Image source: dsv.com
