Schenker buy makes DSV a forwarder colossus

“DB Schenker is one of the most powerful and innovative teams in transportation and logistics with more than 150 years of experience,” said Jochen Thewes, chief executive of Schenker, in a release. “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. 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.”

The sale is expected to be completed by 2025.

The combined networks will have annual volume of 4.3 million twenty-foot equivalent units, 2.64 million tons of airfreight and 1.88 million square feet of warehouse space in more than 60 countries.

“This is a transformative event in DSV’s history, and we are very excited to join forces with Schenker,” said Jens H. Lund, chief executive of DSV, in the release. “With the acquisition we bring together two strong companies, creating a world-leading transport and logistics powerhouse that will benefit our employees, customers and shareholders.”

Schenker is the latest acquisition by DSV. Others have included UTi Worldwide of the U.S., Switzerland-based Panalpina and Kuwaiti Global Integrated Logistics. The Danish company won out over a bid by a private investor consortium led by CVC Capital Partners of New York.

The sale comes as Deutsche Bahn refocuses investment on its core domestic passenger rail business and chips away at its $33.25 billion debt.

“The sale of DB Schenker to DSV marks the largest transaction in DB’s history and provides our logistics subsidiary with clear growth prospects,” said Richard Lutz, CEO of Deutsche Bahn, also in a release. “It has been important for us to find a strong partner for Schenker and a long-term home for the employees of the company.”