Skip to content
Search AI Powered

Latest Stories

Disgruntled investors urge Forward Air to go private

Major shareholders criticize January acquisition of Omni Logistics as being too expensive.

forwardair AdobeStock_303208609.jpg

The freight and logistics company Forward Air Corp. continues to come under pressure from investors who are dissatisfied with its disputed acquisition of logistics service provider Omni Logistics LLC seven months ago.

The fraught acquisition only went through after Dallas-based Omni prevailed in a court fight, forcing Forward Air tried to honor its offer to buy the firm for $3.2 billion despite subsequent efforts to back out of the deal.


Executives from the two firms say the intent of the merger was to create a combined company that would be the category leader in the expedited less than truckload (LTL) freight sector.

However, on Tuesday the financial firm Ancora Holdings Group LLC—which owns a 4% stake in the company, making it a top 10 shareholder—called the deal a debt-funded acquisition that has “wiped out a tremendous amount of shareholder value.” To repair that alleged damage, Ancora is urging the Forward Air board of directors to take the company private by accepting a bid from the private equity firm Clearlake Capital Group, which is already Forward Air's second-largest owner with a 13.8% stake.

And if board members do not explore the offer, Ancora threatened to mount an effort to replace them. “In the event such overwhelming consensus is ignored, we expect there will be a formidable campaign to replace several members of the Board – particularly those who pushed through this year’s disastrous acquisition – at the 2025 Annual Meeting of Shareholders,” the Ancora letter said. “While a sale may not be your first choice, prioritizing shareholders’ interests and protecting them from more permanent value destruction must be your top priority.”

 

 

 

 

The Latest

More Stories

Trucking industry experiences record-high congestion costs

Trucking industry experiences record-high congestion costs

Congestion on U.S. highways is costing the trucking industry big, according to research from the American Transportation Research Institute (ATRI), released today.

The group found that traffic congestion on U.S. highways added $108.8 billion in costs to the trucking industry in 2022, a record high. The information comes from ATRI’s Cost of Congestion study, which is part of the organization’s ongoing highway performance measurement research.

Keep ReadingShow less

Featured

From pingpong diplomacy to supply chain diplomacy?

There’s a photo from 1971 that John Kent, professor of supply chain management at the University of Arkansas, likes to show. It’s of a shaggy-haired 18-year-old named Glenn Cowan grinning at three-time world table tennis champion Zhuang Zedong, while holding a silk tapestry Zhuang had just given him. Cowan was a member of the U.S. table tennis team who participated in the 1971 World Table Tennis Championships in Nagoya, Japan. Story has it that one morning, he overslept and missed his bus to the tournament and had to hitch a ride with the Chinese national team and met and connected with Zhuang.

Cowan and Zhuang’s interaction led to an invitation for the U.S. team to visit China. At the time, the two countries were just beginning to emerge from a 20-year period of decidedly frosty relations, strict travel bans, and trade restrictions. The highly publicized trip signaled a willingness on both sides to renew relations and launched the term “pingpong diplomacy.”

Keep ReadingShow less
forklift driving through warehouse

Hyster-Yale to expand domestic manufacturing

Hyster-Yale Materials Handling today announced its plans to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for certain portions of its lineup of forklift trucks and container handling equipment.

That means the Greenville, North Carolina-based company now plans to expand its existing American manufacturing with a targeted set of high-capacity models, including electric options, that align with the needs of infrastructure projects subject to BABA requirements. The company’s plans include determining the optimal production location in the United States, strategically expanding sourcing agreements to meet local material requirements, and further developing electric power options for high-capacity equipment.

Keep ReadingShow less
map of truck routes in US

California moves a step closer to requiring EV sales only by 2035

Federal regulators today gave California a green light to tackle the remaining steps to finalize its plan to gradually shift new car sales in the state by 2035 to only zero-emissions models — meaning battery-electric, hydrogen fuel cell, and plug-in hybrid cars — known as the Advanced Clean Cars II Rule.

In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.

Keep ReadingShow less
screenshots for starboard trade software

Canadian startup gains $5.5 million for AI-based global trade platform

A Canadian startup that provides AI-powered logistics solutions has gained $5.5 million in seed funding to support its concept of creating a digital platform for global trade, according to Toronto-based Starboard.

The round was led by Eclipse, with participation from previous backers Garuda Ventures and Everywhere Ventures. The firm says it will use its new backing to expand its engineering team in Toronto and accelerate its AI-driven product development to simplify supply chain complexities.

Keep ReadingShow less