U.S./Canada air-cargo and pool trucking services provider Forward Air Corp., has purchased temperature controlled and logistics services provider Total Quality Inc. for around $66 million.
The Grand Haven, Mich.-based TQI was started in 1992. It currently concentrates on the pharmaceutical and life sciences industries but also provides truckload and less-than-truckload brokerage transportation services.
“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," said Bruce A. Campbell, Forward Air chairman, president and CEO. "None of those hurdles exists with TQI.”
Forward Air Corp., based in Greenville, Tenn., operates two business segments, Forward Air Inc. and Forward Air Solutions Inc. The former is contractor to the air cargo industry providing time-definite ground transportation services through a network of terminals located on or near major airports in 85 cities in the United States and Canada. The latter is a provider of pool distribution services involving the consolidation and shipment of several smaller less-than-truckload shipments to a common area or region. The pool distribution network consists of terminals and service locations in 19 cities within the Mid-Atlantic, Southeast, Midwest and Southwest.
Forward Air said TQI was acquired on a cash-free, debt-free basis with an adjustment for working capital. The transaction will be funded by Forward Air’s cash reserves and is expected to be accretive to its 2013 earnings.