Editor's note: This story was updated to reflect the deal closed.
Forward Air’s acquisition of Omni Logistics is back on track, with a new deal having closed on Thursday
The Greenville, Tennessee-based LTL carrier announced Monday it reached a deal with Omni Logistics to amend terms of the existing merger agreement, effectively ending transaction litigation between the companies, according to an announcement by Forward Air.
Under the amended agreement, Omni shareholders will receive $20 million in cash, instead of the $150 million initially agreed, and those investors will receive slightly less equity: 35% of Forward’s pro forma common equity.
“We have always believed in the power of this acquisition and are pleased to have found a way forward,” Forward Air Chairman, President and CEO Tom Schmitt said in a statement. “In recent days, we have engaged constructively with Omni to set a path forward that ends our legal dispute.”
Forward Air, which had previously expressed reservations about the merger, is now back on board. When the merger was announced in August, the deal was expected to create a $3.8 billion brokerage and LTL services giant with a national warehouse and distribution network.
“The revised agreement enables Forward to accelerate its long-term Grow Forward strategy and positions the combined company as the premier provider of choice in high-quality freight transportation,” Schmitt said in the statement. “We believe this highly compelling acquisition will deliver significant long-term shareholder value and we look forward to swiftly closing the transaction so we can begin to capitalize on the many exciting opportunities ahead.”
As the deal prepared to close, the two sides expressed enthusiasm to move forward with the merger. On Monday, Omni Logistics CEO JJ Schickel, who will become president of Forward Air, said he was ready to hit the ground running with a company it has worked with closely for decades.
When the deal closed Thursday, Schmitt said the company was “pleased to welcome the Omni team to the Forward Family.”
Forward Air said significant planning to integrate Omni into the company had already been completed following the deal’s August announcement. More details about growth strategy as well as management and board structure will be discussed during the company’s earnings call next month, the company said.
