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Forward Air willing to give $125 million for CLP Towne

Staff writer |
Forward Air Corporation reported that Forward Air, Inc. has executed a definitive agreement to acquire CLP Towne Inc. along with the preannouncement of fourth quarter and full year 2014 results.

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Founded in 1963, Towne is a full-service trucking provider offering time-sensitive less-than-truckload shipping, full truckload service, an extensive cartage network, container freight stations and dedicated trucking.

Towne's airport-to-airport network provides scheduled deliveries to 61 service points. A fleet of approximately 525 independent contractor tractors provides the line-haul between those service points.

Headquartered in South Bend, Indiana, Towne had 2014 unaudited revenue of approximately $230 million. The purchase price will be $125 million, subject to an adjustment for working capital. Forward Air also anticipates approximately $15 million of cash tax savings resulting from the benefit of past net operating losses.

The transaction will be funded by company's recently replaced credit facility, which in addition to a $150 million revolving line of credit, now also has a $125 million term loan component. Excluding one-time deal-related costs, the transaction is expected to be accretive to 2015 earnings.

The closing of the transaction is subject to various customary conditions, including compliance with covenants and agreements in the definitive agreement in all material respects. It is anticipated that the transaction will close in the first quarter of 2015.

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