Forward Air completes acquisition of Central States Trucking, Central States Logistics for US$95.6M

Cindy Allen

GREENEVILLE, Tennessee , February 6, 2014 (press release) – Forward Air Corporation (FWRD) today announced that its planned acquisition of all of the stock of Central States Trucking Co. and Central States Logistics, Inc. (collectively referred to as “CST” in this release) from Central States Inc. has formally closed. CST provides industry leading 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 warehouse services.

Forward Air acquired CST for the aggregate purchase price of $95.6 million, which is approximately eight times 2013 adjusted EBITDA. The transaction is being funded by Forward Air’s cash reserves and is expected to be accretive to its 2014 earnings.

Advisors

Raymond James served as financial advisor to Forward Air.

About Forward Air Corporation

Forward Air Corporation operates three business segments, Forward Air, Inc., Forward Air Solutions, Inc. and Total Quality, Inc.

Forward Air, Inc. 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. It provides these services as a cost-effective alternative to air transportation of cargo that must be delivered at a specific time but is relatively less time-sensitive than traditional air freight or when air transportation is not economical.

Forward Air Solutions, Inc. is a provider of pool distribution services. Pool distribution 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 in a very precise, time-sensitive manner. Our pool distribution network consists of terminals and service locations in 19 cities within the Mid-Atlantic, Southeast, Midwest and Southwest.

Total Quality, Inc. utilizes industry-leading temperature-controlled equipment, 24-hour monitoring and tracking technology and layered security features to provide our customers with the highest level of service. In addition to our core pharmaceutical services, we provide brokerage transportation services. Headquartered in central Michigan, we service the United States, Canada and Mexico.

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