Forward Air brings Total Quality Inc. into the fold

By Jeff Berman, Group News Editor
March 04, 2013 - LM Editorial

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

AgTC will provide unique market intelligence at next annual meeting in San Francisco this June

With no fuel tax increase likely ahead of this year’s mid-term elections, trucking interests in Washington are moving to Plan B in their attempt to shore up funding for badly needed infrastructure improvements.

Crowley Maritime Corporation has acquired majority ownership of Accord Ship Management (HK) Limited and Accord Marine Management Pvt. Ltd.

To catch a rising economic tide this year, the Port of Long Beach will need to modernize and find new efficiencies to move increasing amounts of cargo at a faster pace, said experts gathered earlier this month for the Port’s 10th annual “Peak Season Forecast” at the Long Beach Convention Center.

Article Topics

News · Air Freight · All topics

About the Author

Jeff Berman, 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.

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