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.”
