Benzinga | Nov 3, 2021 09:22AM EDT

Forward Air Reports Purchase Of BarOle Trucking Co., TKI Intermodal, No Terms Disclosed

Forward Air Corporation (NASDAQ:FWRD) (the "Company", "Forward", "we", "our", or "us") is executing a growth strategy that involves organic infrastructure investments, such as its ongoing LTL network expansion, as well as inorganic investments, including acquisitions of complementary businesses. Our primary focus is to pursue accretive acquisitions that complement or expand the Expedited LTL division, while continuing to grow our intermodal segment with strategic acquisitions. As part of the inorganic growth strategy, Forward today announced that it has entered into two separate agreements to acquire the assets of BarOle Trucking, Inc. and the trucking-related assets of TKI Intermodal, LLC. These acquisitions are a part of the company's strategy focused on infrastructure investment to advance intermodal transportation capabilities and market leadership, while also gaining additional storage yards, chassis, and drivers. The acquisitions are expected to add $25M in revenue for the company and more than 82 new employees, including 95 drivers -- quadrupling Forward's total number of drivers in the Minneapolis Intermodal market.

"The trucking and logistics industry is under unprecedented pressure, especially within the intermodal market, as we have seen higher demand than normal," says Tom Schmitt, Chairman and CEO of Forward Air. "The acquisitions are a continuation of our business strategy, empowering us with the additional resources necessary to meet growing customer demand while driving efficiency, market expansion, and industry-leading career opportunities."

As with all of Forward's acquisitions in this space, the company was eager to seek BarOle, the largest intermodal carrier in the Twin Cities, and TKI, a Minneapolis-based freight shipping company that specializes in container drayage transportation and storage, due to their equal focus on quality service with cultures compatible with Forward Intermodal.

These acquisitions represent continued execution of Forward's roll-up strategy in Intermodal, which began in 2014 with the acquisition of Central States Trucking. Both acquisitions will provide Forward with additional capacity and resources to meet current customer demands in the intermodal market and extend Forward's service footprint in the Minneapolis--Saint Paul, Minnesota area. The acquisition of BarOle will also provide a larger terminal location, allowing for further expansion in the future. Forward is currently evaluating the potential opportunity to consolidate its post-closing Minnesota operations into a single location, driving efficiency at the terminal.

The BarOle acquisition is expected to close in December and TKI closed in October 2021. There are no employment redundancies, and newly acquired team members will have significant opportunity for career progression within the greater Forward business.