DSV: We View the Acquisition of Schenker Positively, but It Is Hardly a Done Deal

DSV announced it will be acquiring 100% of Schenker for EUR 14.3 billion, financed with EUR 4.0 billion-EUR 5.0 billion in equity and the rest via debt financing. The deal is pending approval by Deutsche Bahn's supervisory board and the German Federal Ministry for Digital and Transport, with both decisions expected in coming weeks. Management expects the deal to close during the second quarter of 2025, pending regulatory approval. The transaction multiples correspond to enterprise value/sales of 0.77 times and EV/EBIT of 14.0 times based on the financials of the last 12 months ending June 2024 versus EV/sales of 1.81 times and EV/EBIT of 16.26 times for DSV, a sign the acquisition may be value-accretive.