The $27 million transaction, which is expected to close in April, will help the Tennessee-based company expand its final-mile delivery services.
Forward Air Corp. announced Monday it has agreed to acquire privately owned last-mile provider FSA Logistix for $27 million in cash and additional contingent consideration based upon future revenue generation.
The transaction is expected to close in April. FSA Logistix will be assigned to the final-mile division of Forward Air’s Expedited LTL segment, said Forward Air’s Senior Vice President and CFO Michael Morris, and it is expected to contribute $75 million in revenue and $4.5 million of EBITDA annually.
“We are extremely pleased to have FSA join the Forward Air family,” said Forward Air President and CEO Tom Schmitt. “Together, we will significantly grow our existing final-mile service offerings and take our precision execution directly to consumers’ homes.”
FSA Logistix, which has management offices in Fort Lauderdale, Fla., and Southlake, Texas, provides last-mile logistics services to national retailers, manufacturers, e-tailers and third-party logistics companies. It has operations in the in the East, Midwest, Southwest and West regions of the United States.
Forward Air, founded in 1990 and headquartered in Greenville, Tenn., offers surface shipping on an accelerated “time-definite” basis, according to its website, and provides ground transportation and related logistics services to the North American air freight and expedited LTL markets. Its network includes more than 90 facilities located at or near airports in 35 states and Quebec, Canada, 12 regional sort centers and more than 300 secondary airports.