Forward Air Acquisition to Expand Intermodal Footprint
Yet another indicator of the upswing in trucking mergers and acquisitions is word that Forward Air Corporation has announced its wholly owned subsidiary, Central States Trucking Co., will buy substantially all of the assets of Atlantic Trucking Co., a Charleston, S.C.-based privately held provider of intermodal and drayage services.
by Staff
April 12, 2017
Photo: Forward Air
2 min to read
Photo: Forward Air
Yet another indicator of the upswing in trucking mergers and acquisitions is word that Forward Air Corporation has announced its wholly owned subsidiary, Central States Trucking Co., will buy substantially all of the assets of Atlantic Trucking Co., a Charleston, S.C.-based privately held provider of intermodal and drayage services.
Ad Loading...
The purchase is consistent with Greeneville, TN-based Forward Air’s strategy over the past several years to expand its intermodal holdings via acquisition.
Ad Loading...
Stifel analysts termed the deal “a bolt-on acquisition,” as Atlantic's service area “basically plugs a Southeastern hole in CST's drayage footprint.”
The transaction is expected to close by the end of Q2. No terms were disclosed, but Stifel estimated the price was in the $25 million range, or five times Atlantic’s $5.1 million EBITDA figure for last year. During calendar year 2016, Atlantic generated approximately $62.3 million in revenue.
The deal includes the assets of Atlantic Trucking Co. along with those of Heavy Duty Equipment Leasing LLC, Atlantic Logistics LLC, and Transportation Holdings Inc.
“We are pleased to add Atlantic to our Intermodal segment,” said Matthew Jewell, president of Logistics Services at Forward Air. “Atlantic has the management talent, fleet size, customer base, geographic footprint and quality of operations that we have been looking for to serve as our Southeast beachhead, and to complement our Midwest legacy locations.”
M&A activity in the trucking space has picked up of late, most notably reflected in the mega-deal announced ealrier this week to bring Knight and Swift together.
ACT Research data shows volumes hitting a four-year high and supply-demand balance strengthening, but higher oil prices are undercutting tariff relief and tempering optimism.
The patent-pending cargo solution integrates a digitally connected cargo door and an intelligent locking system with the TrailerHawk.AI technology platform.
Speaking at the TMC Annual Meeting in Nashville, ATA President Chris Spear said trucking faces mounting pressure from rising fuel prices, geopolitical instability, and uncertainty around trade policy.
More than 100,000 new trucking companies enter the industry each year, but regulators manage to audit only a fraction of them. That churn creates opportunities for inexperienced startups — and for “chameleon carriers” that shut down after safety violations and reappear under new identities. Read more from Deborah Lockridge in this commentary.
HDTX is an intimate event that connects heavy-duty trucking fleet managers with industry suppliers through small-group discussions, educational sessions, and structured one-on-one meetings.
Optimal Dynamics says its new Scale platform uses AI agents and optimization to help carriers find and secure freight that improves network balance and profitability.
NACFE's Run on Less - Messy Middle project demonstrates the power of data in helping to guide the future of alternative fuels and powertrains for heavy-duty trucks.