On Thursday, Forward Air and Omni Logistics announced their intention to merge through a cash and stock transaction, resulting in the formation of a company valued at $3.7 billion. As per the agreement’s terms, Omni’s shareholders will receive a total of $150 million in cash as well as shares in Forward Air’s common stock and preferred stock.
The merged entity will operate from over 300 locations, establishing a robust network that benefits customers. This network will be strengthened by Omni’s strategically positioned terminals across the U.S. (over 40 terminals) and Forward Air’s comprehensive terminal network situated near or within U.S. airports. Forward Air also has plans to add 30 new terminals in the U.S., Canada, and Mexico within the next five years. Looking further ahead, the incorporation of Omni’s presence in Europe, Asia, and South America is anticipated to enhance Forward Air’s international capabilities, enabling it to offer extended logistics support to global clients.
Omni, headquartered in Dallas, Texas, specializes in asset-light, high-touch logistics and supply chain management. The company offers services such as domestic and international freight forwarding, fulfillment, customs brokerage, distribution, and value-added services. These services cater to U.S.-based customers involved in both domestic and international operations.
By merging Forward Air and Omni, a well-scaled, premier, less-than-truckload (LTL) enterprise is formed. This enterprise is dedicated to providing customers with comprehensive solutions for intricate and high-value freight requirements, utilizing various modes of transportation.
Tom Schmitt, the Chairman, President, and Chief Executive Officer of Forward Air, expressed confidence that the merged company will become a preferred choice for customers. He anticipates competing effectively for a larger portion of the high-quality freight transportation market, given the dynamic landscape where customers are actively seeking more dependable LTL solutions.
“The combination of Omni with Forward creates a company positioned to achieve the full potential of our LTL business, provide a broad offering of complementary services to our customers, and deliver meaningful value for our shareholders,” he said. “Bringing together our organizations is a key stepping stone of the fourth and final phase of our Grow Forward journey to focus on high-value freight, develop an efficient operating network, implement strategic pricing discipline, and drive an expanded customer base.”
By incorporating Omni’s advanced commercial engine, Forward Air gains entry to an extensive customer base of over 7,000 clients. This inclusion results in an expanded domestic presence for Forward Air and an enriched array of critical logistics services, versatile multimodal operations, and comprehensive supply chain solutions. In a reciprocal manner, Omni’s clientele will enjoy the advantages of Forward Air’s Precision Execution. This distinctive feature ensures customers experience the industry’s quickest transit times, superior on-time performance, and the lowest rates of claims. Notably, more than 70% of Omni’s customer base focuses on high-value freight, a facet that is poised to broaden Forward Air’s scope within the expedited freight sector.
“Omni has a proven track record of solving highly complex supply chain challenges through deep industry expertise, advanced proprietary technology, and a multi-disciplinary commercial engine that delivers bottom-line value to customers,” said Omni Chief Executive Officer J.J. Schickel, who will join Forward Air’s board of directors. “We are excited to have found in Forward a like-minded partner who shares our commitment to strong customer relationships and unrivaled service, central tenets of our success in growing our customer base from 300 to 7,000 over the last five years. I am very proud of what Omni accomplishes daily for our customers and am thrilled to bring our companies and teams together to achieve the full potential of our combined force.”
