GREENEVILLE, Tenn. – Forward Air Corporation is acquiring substantially all of the assets of FSA Logistix, a privately held final-mile provider.
The cash deal for US$27 million plus additional contingent consideration based upon future revenue generation is subject to customary closing conditions. Forward Air expects 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, Fla. and Southlake, Tex. 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.”
With respect to this acquisition’s anticipated impact on Forward Air’s operating results, Michael Morris, senior vice-president and CFO, said, “FSA is expected to contribute $75 million of revenue and $4.5million of EBITDA on an annualized basis. FSA will be assigned to the final mile division of the Expedited LTL segment.”