Forward Air’s takeover of Omni Logistics is back on track.
The Greenville, Tenn.-based LTL carrier announced Monday that it has reached an agreement with Omni Logistics to amend the terms of its existing merger agreement, effectively ending transactional disputes between the companies, according to an announcement by Forward Air.
Under the amended deal, Omni shareholders will receive $20 million in cash, instead of the $150 million originally agreed upon, and those investors will receive slightly less equity: 35% of Forward’s pro forma common equity.
“We have always believed in the strength of this acquisition and are pleased to find a way to move forward,” said Forward Air President and CEO Tom Schmitt. “Over the past few days, we have worked constructively with Omni to chart a path forward that ends our legal dispute.”
Forward Air, which had previously expressed reservations about the merger, is now backtracking. When the merger was announced in August, the deal was is expected to create a $3.8 billion LTL brokerage and services giant with a national warehouse and distribution network.
“The revised agreement enables Forward to accelerate its long-term Grow Forward strategy and positions the combined company as the leading provider of choice in high-quality freight,” Schmitt said in the statement. “We believe this extremely exciting acquisition will deliver significant long-term shareholder value and look forward to closing the transaction quickly so we can begin to capitalize on the many exciting opportunities ahead.”
Omni Logistics is also ready to proceed with the merger.
“We are excited to hit the ground running with the Forward Air team, with whom we have worked closely for decades, and look forward to capitalizing on the significant value creation opportunity that lies ahead,” said Omni Logistics CEO JJ Schickel, the who will become president. of Forward Air if the deal clears, he said in a statement.
Forward Air and Dallas-based Omni are seeking to close the deal by the end of the week.