Forward Air brings Total Quality Inc. into the fold
March 04, 2013
Air cargo transportation services provider Forward Air Inc. said today it has acquired Grand Haven, Michigan-based Total Quality Inc. (TCI), a provider of maximum security and temperature-controlled services for pharmaceutical and life sciences shippers.
The purchase price was $66 million, according to Forward, with an earn-out of up to $5 million based on TQI’s 2013 and 2014 performance. Forward said that TQI was acquired on a cash-free debt basis with an adjustment for working capital. The company added that 2012 revenue for TQI was roughly $54.8 million.
Forward officials were not available for additional comment on the acquisition at press time.
TQI was established in 1992. The company uses industry-leading temperature-controlled equipment, 24-hour real-time monitoring and tracking technology and layered security features and practices that Forward said provide shippers with high service levels. And along with its services geared towards the pharmaceutical sector, TQI also offers truckload and less-than-truckload brokerage transportation services.
“We are very excited about the acquisition of TQI,” said Bruce A. Campbell, Forward Air Chairman, President and CEO, in a statement. “Our team has looked at a number of acquisition opportunities over the last few years only to have them eliminated from consideration due to core customer channel conflicts, high levels of asset intensity or inferior margins and returns. None of those hurdles exists with TQI.”
Prior to this acquisition, Forward Air has been relatively quiet on the acquisition front. In 2007, it acquired Black Hawk Freight, and in 2008 it acquired Service Express, Inc.
Campbell added that bringing TQI into the fold will be a welcome addition to its airport-to-airport network, TLX full truckload, Complete pick-up and delivery and Solutions final mile services. And he added that there will be both cross-selling and operational opportunities for its combined teams to take advantage of in the future.
Forward’s 2012 full-year revenue—of $584.4 million—was up 8.9 percent annually, with income from operations—at $83.5 million—up 8 percent annually.
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