Forward Air Corp., which operates three business units, has agreed to acquire all of the stock of Central States Trucking and Central States Logistics (CST).
The purchase price is $95.6 million and is on a cash-free, debt-free basis with an adjustment for working capital.
Founded in 1980, CST provides container and intermodal drayage services primarily within the Midwest region of the United States. CST also provides linehaul service within the airport-to-airport space, as well as, dedicated contract and container freight station (CFS) warehouse services.
“We look forward to the addition of this newest service offering to our airport-to-airport network, TLX full truckload, complete pick-up and delivery, solutions final mile and TQI temperature-controlled services. Undoubtedly, there will be both cross-selling and operational opportunities for our combined teams to take advantage of as we move forward.”
CST has a seven terminal network with approximately 500 office employees and drivers.
“We are very excited about the acquisition of CST. For a number of years we have had the desire to enter the drayage space via purchase of a company with a scalable platform. CST not only provides that platform, but does so while achieving the high margins and low asset intensity that our shareholders have come to expect from us,” said Bruce A. Campbell, chairman, president & CEO of Forward Air Corp.
Forward Air Corporation operates three business segments, Forward Air, Inc., Forward Air Solutions, Inc. and Total Quality, Inc. Forward Air is a high-service-level 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.
Forward Air Solutions provides pool distribution, which involves the consolidation and shipment of several smaller less-than-truckload shipments to a common area or region. Once at the regional destination, the loads are deconsolidated, then grouped with other shipments with common delivery points, and delivered.
Total Quality utilizes temperature-controlled equipment, 24-hour monitoring and tracking technology and layered security features with its core customers in the pharmaceutical business.