Shares of Forward Air fell again on Monday after M&A blog Axios Pro reported that a takeover of the company was no longer imminent.
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“Forward Air’s auction has slowed down amid unsatisfactory offers from private equity suitors,” the report said.
Shares of Forward fell more than 20 percent in Monday’s session and briefly halted trading before closing late at $19.19 a share, down 4.7 percent on the day. The stock has fallen more than 30 percent in the past month due to the lack of a viable takeover offer.
Investors called for the company to undertake a strategic review of its operations earlier this year following a controversial merger with Omni Logistics. Some investors challenged the structure of the deal, which bypassed a shareholder vote. Activists criticized the merger because it significantly increased Forward’s debt and appeared to put it in competition with existing customers.
Previous reports indicated that several private equity companies had offered to buy this company. Clearlake Capital and Apollo Global Management (NASDAQ: APO ) are still in the running after filing second-round bids last month, a report said Monday.
Forward generated adjusted earnings before interest, taxes, depreciation and amortization of $74 million in the second quarter, an increase of $5 million sequentially. Net debt of $1.69 billion was 5.7 times trailing 12-month adjusted consolidated EBITDA of $298 million at the end of the period, up from 5.3 times at the end of the first quarter.
FWRD stock was trading at $110 before the Omni deal was announced in August 2023.
Forward Air will report third-quarter results after the market closes on Nov. 5.
FreightWaves has reached out to Forward Air for comment.
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