Forward Air and Omni Reach Definitive Agreement
Forward Air Merger with Omni Logistics
Definitive Agreement Reached in a cash-and-stock transaction.
On August 10th Forward Air and Omni announced a definitive agreement to merge together. The combined companies will offer a scaled, premier less-than-truckload carrier model serviced on providing clients looking for 'high-service' freight needs.
TLI currently works with Forward Air & Omni, and we have a meeting already scheduled with them next week to gather further details. TLI is excited to learn more about their future ambitions, and believe this should result in further service improvement for our esteemed clients. Forward CEO Tom Schmitt said, "The combination of Omni with Forward creates a company positioned to achieve the full potential of our LTL business, provide a broad offering of complementary services to our customers and deliver meaningful value for our shareholders."
The merger is still subject to regulatory approval and is expected to be complete prior to the end of 2023. Forward said the newly formed partnership will be a subsidiary, and the board of directors at both companies have approved the transaction. Both companies will contribute their operating assets to the newly merged business.
Schmitt also advised, "We also believe the combination will allow us to unlock significant growth through enhanced scale, execution and operational synergies. We look forward to benefiting from Omni’s unique capabilities and expertise and to bringing even greater value into the expedited freight marketplace."
Forward Air's strategy was to focus growth on high-value freight while expanding their operating network. The merger of the companies will enhance their service footprint and enable the routing of expedite freight. The details of the deal involve Omni Shareholders receiving $150 million cash, and 37.7% equity in the combined company.
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