Forward Air Corporation has entered into an agreement to acquire substantially all of the assets of last mile provider FSA Logistix (FSA) for US$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 specialises 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 (Florida) and Southlake, (Texas) and has operations in the US East, Midwest, Southwest and West regions.
Forward Air president and chief executive officer, Tom Schmitt 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.”
FSA founder and executive chairman, Charlie Annett 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, chief financial officer and senior vice president, Michael Morris said FSA is expected to contribute $75 million of revenue and $4.5 million of EBITDA on an annualised basis and FSA will be assigned to the final mile division of the Expedited LTL segment.
