Business
Forward Air Corporation Announces Acquisition of Linn Star Holdings, Inc., Linn Star Transfer, Inc., and Linn Star Logistics, LLC
GREENEVILLE, Tenn.--(BUSINESS WIRE)-- Forward Air Corporation (NASDAQ:FWRD) today announced that it has entered into an agreement to acquire substantially
About this update from Forward Air Corporation
[{"type":"text","content":" GREENEVILLE, Tenn.--(BUSINESS WIRE)--\nForward Air Corporation (NASDAQ:FWRD) today announced that it has entered into an agreement to acquire substantially all of the assets of Linn Star Holdings, Inc., Linn Star Transfer, Inc. and Linn Star Logistics, LLC (collectively referred to as “LSHI”), a privately held final mile provider for cash consideration of $57.2 million. The transaction will not include LSHI’s California operations. 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 January 2020.\n\n\nLSHI specializes in last mile logistics and in-home installation services for a range of national retailers and manufacturers. LSHI is headquartered in Cedar Rapids, IA and has operations primarily in the Midwest and Southwest regions.\n\n\nTom Schmitt, Chairman, President and CEO, commenting on the acquisition said, “I am thrilled to welcome all Linn Star team members to our family. Four years ago we started taking our Precision Execution DNA directly to our customers' homes. With the 1-2 punch of adding FSA in the spring and now Linn Star, we have substantially expanded our capabilities in this targeted space with a Midwest footprint that is very complementary to, and not duplicative of, our existing footprint. Within 12 months we will have gone from 8 to 83 markets which likely makes us a top 5 player in the U.S. and we are not done yet.\"\n\n\nDennis Munson, founder and CEO of LSHI, added, “We are excited to join the Forward team. We believe the synergies achieved by combining our operations will allow Forward to further its strategy to be a world class final mile solution provider.”\n\n\nWith respect to this acquisition’s anticipated impact on Forward Air’s operating results, Michael J. Morris, CFO, said, “We anticipate that the acquired operations will generate approximately $90 Million of revenue and $8.3 million of EBITDA on an annualized basis. LSHI will be assigned to the final mile division of the Expedited LTL segment.”\n\n\nAbout Forward Air Corporation\n\n\nForward Air keeps your business moving forward by providing services within four business segments: Expedited LTL (provides expedited regional, inte...