Forward Air Probes Sale, Merger, Divestment Options
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Forward Air’s board will undertake a review of the asset-light transportation and logistics services provider’s strategic alternatives, including selling the entire company, another merger or other strategic or financial transactions.
Greeneville, Tenn.-based Forward ranks No. 41 on the Transport Topics Top 100 list of the largest for-hire carriers in North America and No. 31 on the TT Top 100 logistics companies list.
The company completed an at-times contentious takeover of Omni Logistics in January 2024, leading to turmoil in the C-suite.
Mere days after the takeover went through, then-CEO Tom Schmitt was shown the door.
Schmitt
Meantime, Chief Operating Officer Chris Ruble was given the title of president. Ruble assumed a role originally earmarked for former Omni CEO J.J. Schickel.
Shawn Stewart joined Forward as CEO on April 28. Stewart was previously an executive with Ceva Logistics, a unit of French shipping giant CMA CGM, which ranks No. 7 on the TT Top 50 global freight carriers list. Ceva Logistics ranks No. 24 on the logistics TT100.
Stewart
“Under [Forward’s] new leadership team, the company is making tangible progress executing the Omni integration and delivering on synergy targets ahead of schedule while stabilizing the business and advancing the early stages of transforming the company to become a global logistics powerhouse through the implementation of its strategic plan,” said George Mayes, independent chairman of the company’s board.
But while this work is underway, the board and executive team have been analyzing the business and strategy, Forward said Jan. 6, and are making sure they look at all the options for maximizing shareholder value. No timetable has been set for concluding the review.
Forward posted a net loss of $34.2 million, or negative $2.62 per diluted share, in the third quarter of 2024, compared with a $6.49 million profit, 25 cents, in the same period a year earlier, it said in November.
Structural changes are underway following the Omni deal.
Experts from Sailun Tires dive into strategies for managing tire expenses amid a challenging freight market. Tune in above or by going to RoadSigns.ttnews.com.
“During the fourth quarter, we implemented the initial phase of our broader transformation strategy to create a truly integrated and go-to solution provider, and I am very pleased with the pace and rigor we are seeing in the early days,” Stewart said Jan. 6.
“Our initial actions have primarily been focused on structural changes which streamline operations and better support our long-term growth initiatives. Growing our business, operating more efficiently and rightsizing our cost structure will allow us to better serve our customers, take advantage of anticipated demand when the market normalizes and capture the potential of the combined legacy companies,” he added.
Schmitt had already begun the process.
Hub Group, ranked No. 14 on the for-hire TT100 and No. 18 on the logistics TT100, in December 2023 bought Forward’s final-mile unit for about $262 million in cash. The unit provides residential final-mile delivery and installation of big and bulky goods, particularly appliances, its new owner said.
Further divestments were already expected as Schmitt was heading for the exit at Forward. Stifel equity analyst Bruce Chan told TT at the time that Forward’s intermodal unit was likely at the top of the list of assets available for the right price.
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