Forward Air, a well-known North American freight forwarding company, announced its sale
Forward Air, a Us-Based freight forwarder, has publicly disclosed that its board of directors has begun a comprehensive review of strategic options, including a merger or sale of the company.
The Greeneville, Tenn., business, which has annual revenue of $2 billion, comes after months of public criticism from investors who called on the company to launch a sale process following a controversial merger with freight forwarder Omni Logistics.
Forward Air said it has not set a timetable for concluding the review and has not made any decisions related to further action at this time.
Investors have blamed "misallocation of capital" and poor oversight for the Greeneville, Tennessee-based trucking company's current financial woes.
It is reported that shortly after announcing the acquisition of Omni Logistics, another well-known freight forwarder in North America, in August 2023, Forward Air began to have problems.
On August 10, 2023, two well-known old North American freight forwarding Logistics companies: Omni Logistics and Forward Air, announced that the two sides will carry out mergers and acquisitions, the merger and acquisition of up to 3.2 billion US dollars!
Despite the challenges, the merger was finally completed in January 2024. But since the acquisition, Forward Air has come under pressure from major shareholders. Less than a month later, Forward Air's chairman, CEO and president, Tom Schmitt, left the company. In addition, Forward Air's investors expressed strong dissatisfaction with the transfer of equity to Omni's private equity shareholders, and worried that the vertical integration could lead to the loss of its traditional customers.
In addition, Forward Air Chairman George Mayes said: "Under Forward Air's new leadership team, the company has made real progress in executing the Omni integration and achieving synergies ahead of schedule, while stabilizing the business and advancing the early stages of the company's transformation into a global logistics giant through the implementation of its strategic plan."
The Greeneville, Tenn., business, which has annual revenue of $2 billion, comes after months of public criticism from investors who called on the company to launch a sale process following a controversial merger with freight forwarder Omni Logistics.
Forward Air said it has not set a timetable for concluding the review and has not made any decisions related to further action at this time.
Investors have blamed "misallocation of capital" and poor oversight for the Greeneville, Tennessee-based trucking company's current financial woes.
It is reported that shortly after announcing the acquisition of Omni Logistics, another well-known freight forwarder in North America, in August 2023, Forward Air began to have problems.
On August 10, 2023, two well-known old North American freight forwarding Logistics companies: Omni Logistics and Forward Air, announced that the two sides will carry out mergers and acquisitions, the merger and acquisition of up to 3.2 billion US dollars!
Despite the challenges, the merger was finally completed in January 2024. But since the acquisition, Forward Air has come under pressure from major shareholders. Less than a month later, Forward Air's chairman, CEO and president, Tom Schmitt, left the company. In addition, Forward Air's investors expressed strong dissatisfaction with the transfer of equity to Omni's private equity shareholders, and worried that the vertical integration could lead to the loss of its traditional customers.
In addition, Forward Air Chairman George Mayes said: "Under Forward Air's new leadership team, the company has made real progress in executing the Omni integration and achieving synergies ahead of schedule, while stabilizing the business and advancing the early stages of the company's transformation into a global logistics giant through the implementation of its strategic plan."
