Dec 19, 2023 - Business

DB Schenker sale could tell us a lot about private equity in 2024

Dan Primack

Illustration of an airplane with a package strapped to the top — Illustration: Annelise Capossela/Axios

Deutsche Bahn, Germany's national railroad, said it's launched a sale process for its DB Schenker logistics unit, which reportedly could be worth up to €20 billion.

Why it matters: Private equity firms are sure to be interested, but only if they can secure enough debt financing. As such, this process could signal the viability of mega-LBOs in early 2024.

For context, the largest private equity deal of 2023 (so far) was the $14 billion take-private of Toshiba by Japan Industrial Partners.
Strategics also are expected to be involved.

The bottom line: DB Schenker is one of the world's largest logistics providers, including air and ocean freight services, with more than 76,000 employees in 130 countries.

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DB Schenker sale could tell us a lot about private equity in 2024

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