Subscribe to our free, weekly email newsletter!


Forward Air brings Total Quality Inc. into the fold

By Jeff Berman, Group News Editor
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.

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Lyon, France-based Norbert Dentressangle, a $5.5 billion global third-party logistics (3PL) services provider focused on global logistics, transport, ocean, and air services, said today it has acquired Des Moines, Iowa-based Jacobson Companies, a value-added warehousing (VAW) company, for $750 million from private equity firm Oak Hill Capital Partners.

Download the newly released research report, "Transportation Management Systems" conducted by Peerless Research Group (PRG) on behalf of Supply Chain Management Review and Logistics Management magazines. Learn what logistic experts are saying about their current supply chain technology infrastructures, how they tackle the transportation component, and revealed the gaps that still need to be filled in order to attain end to-end visibility of a streamlined supply chain.

From cost center to growth center. Get insightful opinions on changes in the marketplace from this independent survey of warehouse personnel. Motorola Solutions examined the current warehousing marketplace in our 2013 Warehouse Vision Report, conducted April-May of 2013.

Even though not all publicly-traded less-than-truckload carriers (LTL) have posted second quarter earnings yet, the early consensus for those that have issued results is looking very good.

The advance estimate for second quarter GDP at 4.0 percent could serve as a sign of a steadier and improving economy.

Article Topics

News · Air Freight · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA