Forward Air Acquires BarOle Trucking Company and TKI Intermodal, LLC
November 03 2021 - 9:11AM
Business Wire
Acquisitions strengthen intermodal capabilities
in a time of industry strain, quadrupling Forward Air’s
Minnesota-based driver fleet and extending service footprint.
Forward Air Corporation (NASDAQ: FWRD) (the “Company”,
“Forward”, “we”, “our”, or “us”) is executing a growth strategy
that involves organic infrastructure investments, such as its
ongoing LTL network expansion, as well as inorganic investments,
including acquisitions of complementary businesses. Our primary
focus is to pursue accretive acquisitions that complement or expand
the Expedited LTL division, while continuing to grow our intermodal
segment with strategic acquisitions. As part of the inorganic
growth strategy, Forward today announced that it has entered into
two separate agreements to acquire the assets of BarOle Trucking,
Inc. and the trucking-related assets of TKI Intermodal, LLC. These
acquisitions are a part of the company’s strategy focused on
infrastructure investment to advance intermodal transportation
capabilities and market leadership, while also gaining additional
storage yards, chassis, and drivers. The acquisitions are expected
to add $25M in revenue for the company and more than 82 new
employees, including 95 drivers -- quadrupling Forward’s total
number of drivers in the Minneapolis Intermodal market.
“The trucking and logistics industry is under unprecedented
pressure, especially within the intermodal market, as we have seen
higher demand than normal,” says Tom Schmitt, Chairman and CEO of
Forward Air. “The acquisitions are a continuation of our business
strategy, empowering us with the additional resources necessary to
meet growing customer demand while driving efficiency, market
expansion, and industry-leading career opportunities.”
As with all of Forward’s acquisitions in this space, the company
was eager to seek BarOle, the largest intermodal carrier in the
Twin Cities, and TKI, a Minneapolis-based freight shipping company
that specializes in container drayage transportation and storage,
due to their equal focus on quality service with cultures
compatible with Forward Intermodal.
These acquisitions represent continued execution of Forward’s
roll-up strategy in Intermodal, which began in 2014 with the
acquisition of Central States Trucking. Both acquisitions will
provide Forward with additional capacity and resources to meet
current customer demands in the intermodal market and extend
Forward’s service footprint in the Minneapolis–Saint Paul,
Minnesota area. The acquisition of BarOle will also provide a
larger terminal location, allowing for further expansion in the
future. Forward is currently evaluating the potential opportunity
to consolidate its post-closing Minnesota operations into a single
location, driving efficiency at the terminal.
The BarOle acquisition is expected to close in December and TKI
closed in October 2021. There are no employment redundancies, and
newly acquired team members will have significant opportunity for
career progression within the greater Forward business.
About Forward Air Corporation
Forward Air Corporation (NASDAQ: FWRD) is a leading asset-light
freight and logistics company that provides services across the
United States and Canada. We provide expedited less-than-truckload
(“LTL”) services, including local pick-up and delivery, shipment
consolidation/deconsolidation, warehousing, and customs brokerage
by utilizing a comprehensive national network of terminals. In
addition, we offer final mile services, including delivery of
heavy-bulky freight, truckload brokerage services, including
dedicated fleet services; and intermodal, first-and last-mile,
high-value drayage services, both to and from seaports and
railheads, dedicated contract and Container Freight Station
warehouse and handling services. We are more than a transportation
company. As a single resource for your shipping needs, Forward is
your supply chain partner. For more information, visit our website
at www.forwardaircorp.com.
This press release may contain statements that might be
considered as forward-looking statements or predictions of future
operations including with respect to the expected funding and
timing of closing of the BarOle acquisition, growth of the
Company’s Intermodal business, the company’s strategy related to
acquisitions and strategic enhancements to the Company’s Intermodal
business. Such statements are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995
and are based on management’s belief or interpretation of
information currently available. These statements and assumptions
involve certain risks and uncertainties including that the
conditions to closing the BarOle acquisition are not met and the
closing of the BarOle acquisition is delayed or never occurs, that
the performance of the BarOle or TKI businesses post-closing is
worse than anticipated and that the Company is not able to achieve
the planned synergies. Actual events may also differ from these
expectations as a result of the risks identified from time to time
in our filings with the Securities and Exchange Commission. You
should consider the forward-looking statement contained herein in
light of such risks. We assume no duty to update these statements
as of any future date.
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version on businesswire.com: https://www.businesswire.com/news/home/20211103005747/en/
Sophia Farooq - Forward Air sfarooq@forwardair.com
404.362.3959
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