Forward Air to acquire FSA Logistics in move to expand last mile service offerings
Air cargo transportation services provider Forward Air Corporation said this week it has entered into an agreement to acquire FSA Logistics, a privately-held last mile services provider.
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The purchase price was $27 million, including additional contingent consideration based upon future revenue generation according to Forward officials.
The company added that the deal is expected to close next month, at which time FSA will be assigned to the final mile division of the Expedited LTL segment.
According to a Forward statement, non asset-based FSA’s core focus is in providing last mile logistics for various United States-based businesses, including national retailers manufacturers, e-tailers, and 3PLs. The company has management offices Ft. Lauderdale, FL and Southlake, TX, as well as operations in the East, Midwest, Southwest and West regions.
“We are extremely pleased to have FSA join the Forward Air family,” said , Forward Air president and CEO, in a statement. “Together, we will significantly grow our existing final mile service offerings and take our precision execution directly to consumers’ homes.”
Forward officials said that FSA is expected to contribute $75 million of revenue and $4.5 million of EBITDA on an annualized basis.
In a research note, Ben Hartford, transportation analyst, called this deal a small but broadening final-mile delivery services acquisition.
“FSA complements and expands Forward's small, existing final-mile capabilities within its Expedited LTL segment,” wrote Hartford. “FWRD initially entered the final-mile segment when it acquired Towne in early 2015. FSA's scale and geographic scope expands FWRD's final-mile footprint and customer reach, enabling it to participate in bid opportunities with larger-sized customers.”
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