US trucker Forward Air attracts takeover interest from buyout firms, sources say

By Svea Herbst-Bayliss and Abigail Summerville

NEW YORK (Reuters) -Private equity firms including Blackstone (NYSE:BX) and Apollo Global Management (NYSE:APO) have expressed interest in acquiring U.S. trucker Forward Air (NASDAQ:FWRD), people familiar with the matter said.

They signed confidentiality agreements with the company, allowing them to review documents and receive other information to shape a potential bid. Platinum Equity and Clearlake Capital are also able to review material after having signed agreements, the sources said.

Initial takeover bids are due to be submitted during the first week of July, added the sources, who noted there was no guarantee the quartet of buyout firms would submit offers. There is also a possibility other suitors may emerge. The sources spoke on condition of anonymity to discuss private deliberations.

The company declined to comment, as did Blackstone and Apollo. Platinum and Clearlake were not immediately available for comment.

Forward Air, which specializes in moving hauls which do not take up a full truckload, said earlier this week it is committed to advancing its strategic alternatives review, which was announced in January and could include a sale of the company.

Shares in the Greeneville, Tennessee-based company have tumbled from $121 in late 2021 to roughly $20 now, shrinking its market valuation to roughly $610 million. But on a fully diluted basis, including net debt, analysts said the company’s enterprise value is closer to $2.5 billion. 

Private equity investors may be interested in Forward Air because they see a path to growth for the company which is already the dominant player in a niche area of the transportation market, but fell on tough times after an unpopular acquisition in 2024.

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The company bought freight forwarder Omni Logistics in a deal that was not voted on by shareholders, added debt and created operational disruptions, the analysts added.

Not long after the deal was finalized in early 2024, several investors began pressuring the company to review its business, which resulted in the company’s January 2025 announcement.

Frustrated by little visible movement on the review, activist investor Ancora Holdings, which owns 4% of the company, in May mounted a campaign to remove three long-serving directors that it blamed for signing off on the Omni deal and stalling the sales process.

The withhold campaign was a success and the trio resigned this week after the company’s annual meeting.    

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