GREENEVILLE, Tenn. and DALLAS — Forward Air Corporation and Omni Logistics are merging.
The two companies announced on Aug. 10 that the cash-and-stock transaction will create a combined company that generated approximately $3.7 billion of combined adjusted revenue for the 12 months ended June 30, 2023.
Under the terms of the agreement, Omni shareholders will receive $150 million in cash and Forward common stock and preferred stock.
Omni, headquartered in Dallas, Texas, is an asset-light, high-touch logistics and supply chain management company with deep customer relationships in high-growth end markets. Omni delivers domestic and international freight forwarding, fulfillment services, customs brokerage, distribution, and value-added services for time-sensitive freight to U.S.-based customers operating both domestically and internationally.
Greenville, Tennessee-based Forward is a leading ground transportation provider and related shipping services to the North American air freight and expedited less-than-load (LTL) market.
“The combination of Forward and Omni creates a scaled, premier, high-value, LTL enterprise focused on providing customers with multimodal solutions for complex, high-service and high-value freight needs,” a news release stated. “The combined company will be a provider of choice and expects to compete for an increasing share of high-quality freight transportation amidst a dynamic market in which customers are seeking a more reliable LTL solution.”
Tom Schmitt, chairman, president and chief executive officer of Forward, said that the combination of Omni with Forward “creates a company positioned to achieve the full potential of our LTL business, provides a broad offering of complementary services to our customers and delivers meaningful value for our shareholders.”
Schmitt said that the two companies coming together represents “a key stepping stone of the fourth and final phase of our Grow Forward journey to focus on high-value freight, develop an efficient operating network, implement strategic pricing discipline and drive an expanded customer base.”
Craig Carlock, lead independent director of Forward, said, “By uniting these two complementary businesses, the combined company will be well-positioned to meet the unique and evolving needs of a diverse and growing customer base while delivering enhanced value for our shareholders. We are eager to welcome (Omni CEO) J.J. Schickel as president and a member of our board following transaction close and expect to benefit from his insights both as a Forward customer and operator. The Forward board is confident in the value potential inherent in this combination and excited for the benefits it will bring to our key stakeholders.”
Schickel said that Omni has a proven track record of solving highly complex supply chain challenges.
“We are excited to have found in Forward a like-minded partner who shares our commitment to strong customer relationships and unrivaled service, central tenets of our success in growing our customer base from 300 to 7,000 over the last five years,” he said. “I am very proud of what Omni accomplishes daily for our customers and am thrilled to bring our companies and teams together to achieve the full potential of our combined force.”
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