Forward Air Corporation Announces Agreement to Acquire Certain Assets of Service Express, Inc.
Forward Air Corporation Announces Agreement to Acquire Certain Assets of Service Express, Inc.
GREENEVILLE, Tenn.--(BUSINESS WIRE)--
Forward Air Corporation (NASDAQ:FWRD), today announced that its wholly owned subsidiary, Forward Air Solutions, Inc., has entered into an agreement to acquire certain assets of Service Express, Inc. ("Service Express"). Service Express is a privately held provider of pool distribution and related services headquartered in Spartanburg, South Carolina. During the year ended December 31, 2007, Service Express generated approximately $39 million in revenue. The transaction is scheduled to close on or about September 8, 2008 and is subject to the receipt of applicable consents and the satisfaction of other customary closing conditions.
Commenting on the acquisition, Bruce A. Campbell, Chairman, President and CEO, said, "We are pleased to add another quality carrier, Service Express, to our Forward Air Solutions group. Service Express is a high quality provider of pool distribution services with locations in the mid-Atlantic and Southeastern United States, making it a perfect compliment to our existing Forward Air Solutions geographic footprint."
Barry McNaughton, President and CEO of Service Express commented, "I am very pleased that Service Express is joining the Forward Air Solutions group and look forward to working with the Solutions team to take advantage of our expanded network."
About Forward Air Corporation
Forward Air Corporation operates two business segments, Forward Air, Inc. and Forward Air Solutions, 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 83 terminals located on or near major airports 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. Including the acquisition of Service Express, our pool distribution network consists of 20 terminals within the mid-Atlantic, Southeast, Midwest and Southwestern United States.
About Service Express
Founded in 1996, Service Express is a highly-regarded provider of pool distribution and related services to seven retail markets in Maryland, Virginia, North Carolina, South Carolina, Georgia and Alabama. Their website can be found at www.serviceexpressnet.com.
IMPORTANT INFORMATION
This press release contains "forward-looking statements," as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are statements other than historical information or statements of current condition and relate to future events or our future financial performance. Some forward-looking statements may be identified by use of such terms as "believes," "anticipates," "intends," "plans," "estimates," "projects" or "expects." Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The following is a list of factors, among others, that could cause actual results to differ materially from those contemplated by the forward-looking statements: economic factors such as recessions, inflation, higher interest rates and downturns in customer business cycles, our inability to maintain our historical growth rate because of a decreased volume of freight moving through our network or decreased average revenue per pound of freight moving through our network, increasing competition and pricing pressure, surplus inventories, loss of a major customer, the creditworthiness of our customers and their ability to pay for services rendered, our ability to secure terminal facilities in desirable locations at reasonable rates, the inability of our information systems to handle an increased volume of freight moving through our network, changes in fuel prices, claims for property damage, personal injuries or workers' compensation, employment matters including rising health care costs, enforcement of and changes in governmental regulations, environmental and tax matters, the handling of hazardous materials, the availability and compensation of qualified independent owner-operators and freight handlers needed to serve our transportation needs and our inability to successfully integrate acquisitions. As a result of the foregoing, no assurance can be given as to future financial condition, cash flows or results of operations. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Source: Forward Air Corporation
Released September 2, 2008