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Schenker sale could create US logistics powerhouse

August 29, 2024
FreightWaves

The sale of DB Schenker, the logistics arm of Germany’s national railway Deutsche Bahn, could significantly impact the U.S. supply chain industry. Final bids for DB Schenker, which operates 1,850 locations globally, value the company at up to $17 billion. A consortium led by U.S.-based CVC Capital Partners and Danish transport company DSV has bid around 14 billion euros ($15.6 billion).

DB Schenker, with U.S. headquarters in Chesapeake, Virginia, generated $10.43 billion in revenue from its land, sea, and air services in the first half of 2024. The company employs 72,000 people and operates over 725 warehouses worldwide. Its U.S. operations alone are estimated to bring in $3.5 billion in revenue, offering services such as freight brokerage, warehousing, ocean freight, and air cargo.

If DSV's bid is successful, the combined entity could lead in U.S. logistics revenue and airfreight, and rank third in ocean freight based on 2023 data. Reports suggest that the CVC bid includes an option for the German government to acquire a minority stake, potentially raising the deal's value to $17.73 billion.

Berlin's decision to sell Schenker aims to refocus on its domestic rail network and reduce its debt of over $30 billion. CVC plans to list Schenker on the Frankfurt Stock Exchange while maintaining its brand and headquarters in Germany.

A Deutsche Bahn spokesman emphasized that the sale must be economically advantageous for the company but did not provide further details. CVC did not respond to requests for comment. The final decision on the sale is expected in the coming weeks, with the transaction closing in 2025.

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CVC Capital Partners
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Logistics
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deal news
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large cap
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