On Wednesday, Forward Air announced plans to acquire two carriers in separate agreements in order to expand the company’s presence in the Minneapolis intermodal market.
Forward Air has entered into agreements to acquire the assets of BarOle Trucking, Inc and the trucking-related assets of TKI Intermodal LLC. Both companies are based in the Twin Cities.
The financial terms of the acquisitions was not disclosed.
Forward Air says that the two acquisitions will add $25 million in revenue in addition to “more than 82 new employees, including 95 drivers — quadrupling Forward’s total number of drivers in the Minneapolis Intermodal market.”
Forward Air says that no jobs will be lost due to the acquisitions and that new employees will have plenty of job advancement opportunities within Forward Air.
From a November 3 news release from Forward Air:
These acquisitions represent continued execution of Forward’s roll-up strategy in Intermodal, which began in 2014 with the acquisition of Central States Trucking. Both acquisitions will provide Forward with additional capacity and resources to meet current customer demands in the intermodal market and extend Forward’s service footprint in the Minneapolis–Saint Paul, Minnesota area. The acquisition of BarOle will also provide a larger terminal location, allowing for further expansion in the future. Forward is currently evaluating the potential opportunity to consolidate its post-closing Minnesota operations into a single location, driving efficiency at the terminal.
“The trucking and logistics industry is under unprecedented pressure, especially within the intermodal market, as we have seen higher demand than normal,” says Tom Schmitt, Chairman and CEO of Forward Air. “The acquisitions are a continuation of our business strategy, empowering us with the additional resources necessary to meet growing customer demand while driving efficiency, market expansion, and industry-leading career opportunities.”
The TKI acquisition closed in October. The BarOle acquisition is expected to close in December.