Forward Air brings Total Quality Inc. into the fold

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.

By ·

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, 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. Contact Jeff Berman

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!

Article Topics

Air Freight · All Topics
Latest Whitepaper
Improving E-Commerce Fulfillment Through Business Integration
As e-commerce continues to outpace conventional retail, companies of all sizes are finding ways to disrupt traditional business models and seize market share.
Download Today!
From the February 2017 Issue
As the new administration sends waves of uncertainly through the global trade community, this could be the best time ever for shippers to build an investment case for GTM. Here are five trends you need to watch if you’re about to put these savvy systems to work
Carrier Consolidation Keeps Shippers Guessing
Getting Value from the Cloud
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Advance your career with the fastest growing logistics certification – APICS CLTD
During this webcast presenters will give an overview of APICS and the new Certified in Logistics, Transportation and Distribution (CLTD) designation. Learn how the CLTD program can help you stay on top of current trends and advance your career.
Register Today!
EDITORS' PICKS
ASEAN Logistics: Building Collectively
While most of the world withdraws inward, Southeast Asia is practicing effective cooperation between...
2017 Rate Outlook: Will the pieces fall into place?
Trade and transport analysts see a turnaround in last year’s negative market outlook, but as...

Logistics Management’s Top Logistics News Stories 2016
From mergers and acquisitions to regulation changes, Logistics Management has compiled the most...
Making the TMS Decision: Ariens Finds Just the Right Fit
The third time is the charm for this U.S. manufacturer on the hunt for a third-party logistics (3PL)...