February 04, 2015: Forward Air Corporation has executed a definitive agreement to acquire CLP Towne Inc. (Towne).
Founded in 1963, Towne is a full-service trucking provider offering time-sensitive less-than-truckload shipping, full truckload service, an extensive cartage network, container freight stations and dedicated trucking.
Towne's airport-to-airport network provides scheduled deliveries to 61 service points. A fleet of approximately 525 independent contractor tractors provides the line-haul between those service points.
Headquartered in South Bend, Indiana, Towne had 2014 unaudited revenue of approximately US$230 million. The purchase price will be US$125 million, subject to an adjustment for working capital. Forward Air also anticipates approximately US$15 million of cash tax savings resulting from the benefit of past net operating losses.
It is anticipated that the transaction will close in the first quarter of 2015.
Randy Clark, President and CEO of Towne, said: "Combining Towne with Forward Air makes all the sense in the world. It will enable us to leverage Forward Air's network where we lack adequate shipment density, in turn, driving increased profitability almost immediately.
"Furthermore, Towne's best-in-class Midwestern cartage network is a great fit with Forward Air's Complete product and should drive higher utilization and enhanced profitability. Towne's employees and its contractors are all very excited to become part of the Forward Air team."
Bruce A. Campbell, Chairman, President and CEO of Forward Air Corporation, said, "We are extremely pleased with this acquisition. Those familiar with Forward Air and Towne have long thought that this deal was inevitable simply due to the substantial synergies that clearly exist. That's not to say that our combined teams don't have our work cut out for us.
"Our plan is to take a methodical approach to evaluate, then integrate, as much of the Towne book of business as we possibly can. In the short term, this will require a lot of hard work and some additional, integration-related expense. In the longer term, the finished, fully integrated result will create a more reliable network benefiting our customers and ultimately our shareholders."