DSV (DSV) M&A Announcement summary

Deal rationale and strategic fit

• The merger creates the largest global logistics player, combining complementary asset-light models, strong customer service, and expanded scale in air, sea, road, and contract logistics across EMEA, APAC, and the Americas.

• The combined entity will have a global footprint with 147,000 employees in over 90 countries and a revenue of DKK 293 billion.

• Enhanced network, vertical expertise, and service offerings are expected to benefit all customers and support long-term growth.

• The deal supports diversification, operational efficiencies, and DSV's growth strategy.

Financial terms and conditions

• All-cash transaction values Schenker at EUR 14.3 billion (DKK 107 billion) enterprise value and EUR 11 billion (DKK 82 billion) equity value.

• Transaction multiples: EV/LTM revenue of 0.77x and EV/LTM EBIT of 14.0x as of June 2024.

• Financing will be a mix of EUR 4-5 billion equity and the remainder in debt, with committed facilities from major banks.

• DSV's share buyback program is discontinued immediately; standalone 2024 guidance and 2026 targets remain until closing.

• Schenker's balance sheet includes approximately EUR 3 billion in net debt, mainly leases, with minimal refinancing risk.

Synergies and expected cost savings

• Integration will consolidate operations, administration, logistics facilities, and IT, driving efficiencies and margin improvements.

• Synergies are expected to phase in over three years, with margins reaching or exceeding DSV's current levels by 2028.

• Commercial synergies include cross-selling, stronger network, and enhanced service offerings.

• EPS accretive in year two post-closing, with historical synergy realization suggesting potential upside.

• DSV plans to invest EUR 1 billion in Germany over five years to support growth and job creation.