Forward Air Corporation has announced that it has entered into an agreement to acquire substantially all of the assets of FSA Logistix (“FSA”), a privately held final mile provider for cash consideration of $27 million plus additional contingent consideration based upon future revenue generation. The closing of the transaction is subject to customary closing conditions, including but not limited to, compliance with the covenants and agreements in the definitive agreement. It is anticipated that the transaction will be funded from cash on hand and will close in April 2019.
FSA specializes in last mile logistics for a wide range of American companies, including national retailers, manufacturers, eTailers, and third party logistics companies. FSA currently has management offices in Ft. Lauderdale, FL and Southlake, TX and has operations in the East, Midwest, Southwest and West regions.
Tom Schmitt, President and CEO, commenting on the acquisition said, “We are extremely pleased to have FSA join the Forward Air family. Together, we will significantly grow our existing final mile service offerings and take our precision execution directly to consumers’ homes.”
Charlie Annett, founder, Executive Chairman of FSA, added, “We are excited to join the Forward Air team. We believe the synergies achieved by combining our operations with Forward Air will allow Forward Air to further its strategy to be a world class final mile solution.”
With respect to this acquisition’s anticipated impact on Forward Air’s operating results, Michael J. Morris, Senior Vice President and CFO, said, “FSA is expected to contribute $75 million of revenue and $4.5 million of EBITDA on an annualized basis. FSA will be assigned to the final mile division of the Expedited LTL segment.”
“We are extremely pleased to have FSA join the Forward Air family. Together, we will significantly grow our existing final mile service offerings and take our precision execution directly to consumers’ homes.”
