Forward Air to explore alternatives, including sale (updated)

Forward Air (Delaware)

06/01/2025 13:47

(Adds review details throughout)
       Jan 6 (Reuters) - 
    U.S.-based freight forwarding company Forward Air  FWRD.O 
said on Monday its board had initiated a comprehensive review of
strategic options including a merger or a sale of the company.
        The move comes nearly five 
    months after activist investor Ancora
     Holdings reportedly urged Forward Air to consider a sale,
and warned a board challenge might follow if investors' calls
for action are ignored.
  
        Forward Air said it had not set a timetable for the
conclusion of the review and nor had it made any decisions
related to any further actions at this time.
  
        Shares of the company, with a market cap of $966
million, rose about 2% in premarket trading.
  
        Forward Air also said it had taken additional steps to
cut operating expenses in the fourth quarter of 2024 by reducing
workforce, consolidating terminal operations and limiting the
use of third-party vendors. The steps are expected to result in
about $20 million in savings on an annualized basis.
  
        Goldman Sachs & Co LLC is serving as financial adviser
on the review and Jones Day as Forward Air's legal counsel.
  

 (Reporting by Abhinav Parmar in Bengaluru; Editing by Shailesh
Kuber and Maju Samuel)
 ((Abhinav.Parmar@thomsonreuters.com;))