Forward Air Corp. (NASDAQ: FWRD) said late Monday it acquired last-mile provider FSA Logistix for $27 million in cash and for what Forward Air called "additional contingent consideration" based upon future revenue generation.
The transaction, expected to close sometime next month, is expected to add $75 million a year to Greeneville, Tennessee-based Forward Air's last-mile revenue stream, the company said. FSA will be assigned to the final-mile division of Forward Air's expedited less-than-truckload (LTL) segment, its largest.
FSA Logistix, based in Ft. Lauderdale and in Southlake, Texas, provides last-mile logistics services to traditional retailers, e-tailers, manufacturers and third-party logistics providers, companies that serve as intermediaries between shippers and carriers. It operates in the eastern, midwestern, southwestern and western regions of the United States. One of its niches is product assembly, a "value-added" final-mile service that typically commands a premium.
Tom Schmitt, Forward Air's president and CEO, said the acquisition is part of the company's strategy to expand its final-mile service offerings. It is also the first in what may be a series of acquisitions. Top executives said last month that Forward Air would be active on that front during 2019.
Forward Air specializes in offering fast-cycle, time-definite deliveries that are a less expensive alternative to air transport. It operates an airport-to-airport business in which it moves goods between 90 terminals located at or around U.S. airports, and a smaller door-to-door operation.
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