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The Forward Air board of directors has initiated a review of strategic alternatives for the logistics company, including a potential sale, following calls last year from multiple activist investors to consider discussions with prospective buyers.
The board is also considering a possible merger “or other strategic or financial transaction,” but has not made any further decisions, according to a company statement Monday morning. No timetable has been set for the review’s conclusion.
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Four activist investors that represent roughly 25 percent of Forward Air’s outstanding shares have publicly called on the company to explore strategic alternatives in the wake of its widely panned $2.1 billion acquisition of Omni Logistics, which saddled the less-than-truckload (LTL) and intermodal services provider with nearly $1.4 billion in additional debt.
Investors and customers alike had railed against the deal when it was first announced in August 2023, with the former calling it too expensive and accusing Forward Air of skirting a traditional shareholder vote to carry it out. The latter were upset that Forward had essentially acquired a freight forwarding competitor.
Forward and Omni engaged in dueling lawsuits after the acquirer felt the heat of the reaction and sought to exit the deal, but the merger finally closed in January 2024 under amended conditions.
Both Tom Schmitt and J.J. Schickel, the pre-acquisition CEOs of Forward Air and Omni Logistics, were casualties of the merger. Multiple other execs in the C-suite departed in the time since, most recently president and chief operating officer Chris Ruble, who was terminated in December.
Shawn Stewart, who headed up Ceva Logistics’ North America division from April 2020 to March 2024, replaced Schmitt in the role in April. Stewart said in the statement that Forward Air has implemented the initial phase of the broader Omni integration strategy in its current quarter.
“Our initial actions have primarily been focused on structural changes which streamline operations and better support our long-term growth initiatives,” said Stewart. “Growing our business, operating more efficiently and rightsizing our cost structure will allow us to better serve our customers, take advantage of anticipated demand when the market normalizes and capture the potential of the combined legacy companies.”