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 Packaging: The Cost of Shipping Air is Going Up
Retailers and manufacturers that insist on using inefficient and sloppy packaging methods—oversized boxes, inefficient packaging, poorly constructed palletized contents—are paying for their mistakes in sharply higher freight rates. Pitt Ohio White Paper, Logistics White Paper, Dimensional Packaging
Download Today!
From the July 2016 Issue
While it’s currently a shippers market, the authors of this year’s report contend that we’ve entered a “period of transition” that will usher in a realignment of capacity, lower inventories, economic growth and “moderately higher” rates. It’s time to tighten the ties that bind.
2016 State of Logistics: Third-party logistics
2016 State of Logistics: Ocean freight
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Getting the most out of your 3PL relationship
Join Evan Armstrong, president of Armstrong & Associates, as he explains how creating a balanced portfolio of "Top 50" global and domestic partners can maximize efficiency and mitigate risk.
Register Today!
EDITORS' PICKS
Regional ports concentrate on growth and connectivity
With the Panama Canal expansion complete, ocean cargo gateways in the Caribbean are investing to...
Digital Reality Check
Just how close are we to the ideal digital supply network? Not as close as we might like to think....

Top 25 ports: West Coast continues to dominate
The Panama Canal expansion is set for late June and may soon be attracting more inbound vessel calls...
Port of Oakland launches smart phone apps for harbor truckers
Innovation uses Bluetooth, GPS to measure how long drivers wait for cargo