Forward Air exploring potential sale, merger

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The Board of Directors of Forward Air Corporation on Monday initiated "a comprehensive review of strategic alternatives to maximize shareholder value," including a potential sale or merger of the company, "or other strategic or financial transaction relative to the long-term value potential of the company on a standalone basis."

Forward Air (CCJ Top 250, No. 31) has felt pressure from major shareholders dating to its clumsy acquisition of logistics service provider Omni Logistics in January 2024. Forward Air Chairman, Chief Executive Officer and President Tom Schmitt left the company less than a month later. 

Alta Fox Capital Management, which holds over 3% of the company's shares, in October publicly joined other investors in urging the LTL carrier’s board of directors to initiate a formal sales process. Ancora Holdings Group, which owns 4% of the company, called for a “real review of sale options and the retention of truly independent legal and financial advisors," in a letter to the board in August.

"Under Forward Air’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," Independent Chairman of the Board of Directors George Mayes said Monday. "While this work is underway, the board and management team have been actively analyzing the business and strategy to ensure the Company pursues the best path forward to enhance shareholder value. To be comprehensive in its assessment of value creation opportunities, the board has initiated this exploration of strategic alternatives and is committed to pursuing a path that will maximize shareholder value. Regardless of the outcome of this review, Forward will not waver in its commitment to our customers to deliver consistent high-quality service.”

The board has not set a timetable for the conclusion of its review, nor has it made any decisions related to any further actions or potential strategic alternatives at this time. 

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Forward Air CEO Shawn Stewart noted that during the fourth quarter the company took additional steps to reduce operating expenses, including a reduction in workforce, consolidating terminal operations and reducing the use of third-party vendors. These efficiencies are expected to result in approximately $20 million in savings on an annualized basis, the company said, adding these savings are incremental to the $75 million in synergies from the merger integration, which are on track to be achieved by the end of the first quarter of 2025.

Jason Cannon has written about trucking and transportation for more than a decade and serves as Chief Editor of Commercial Carrier Journal. A Class A CDL holder, Jason is a graduate of the Porsche Sport Driving School, an honorary Duckmaster at The Peabody in Memphis, Tennessee, and a purple belt in Brazilian jiu jitsu. Reach him at [email protected]