CVC would 'safeguard DB Schenker jobs and its independence'

Plans to sell the logistics company to the private equity group CVC would keep it a going concern, insist sources.

German railway group Deutsche Bahn is weighing up an offer to sell its logistics business DB Schenker to private equity group CVC, according to two people familiar with the discussions.

The offer would see CVC take a majority stake in DB Schenker, valuing the business at more than €4bn, the people said on Wednesday. The deal is expected to be announced as early as next week, if approved by Deutsche Bahn’s supervisory board on Friday, the people added.

DB Schenker, which operates in more than 130 countries, is one of the world’s largest logistics companies, with annual revenue of about €16bn. It has been under pressure to improve its profitability in recent years, and Deutsche Bahn has been exploring options to sell it since at least 2019.

CVC is a private equity group with a long track record of investing in transportation and logistics companies. It has backed companies including Geodis, a French logistics group, and Tibbett & Britten, a UK-based logistics provider.

The sources said that CVC would “safeguard” DB Schenker’s jobs and its independence, as well as invest in the business to improve its profitability.

“CVC is a specialist investor in the sector and would seek to support the ongoing development of the business,” said one of the people familiar with the talks.

"Deutsche Bahn would retain a stake in the company alongside CVC," said another person. “Deutsche Bahn believes that CVC would be a good partner for DB Schenker, which has a strong market position and a talented management team. DB Schenker would retain its management team and continue to operate as an independent company.”

CVC, Deutsche Bahn and DB Schenker declined to comment.