Shares of Forward Air fell again on Monday after M&A blog, Axios Pro, reported that a buyout of the company is no longer imminent.
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“Forward Air’s auction has slowed amid unsatisfactory bids from private equity suitors,” the report said.
Forward’s stock gapped more than 20% lower during the Monday session, with trading being halted briefly, before rallying late to close at $19.19 per share, down 4.7% on the day. Shares are off more than 30% over the past month due to the absence of a viable takeout offer.
Investors called on the company to conduct a strategic review of its operations earlier this year following fallout from a contentious merger with Omni Logistics. Some investors challenged the deal’s structure, 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 said a few private equity firms had submitted bids to acquire the company. The Monday report said Clearlake Capital and Apollo Global Management (NASDAQ: APO) are still in the running after submitting second-round bids last month.
Forward generated $74 million in adjusted earnings before interest, taxes, depreciation and amortization in the second quarter, a $5 million sequential increase. Net debt of $1.69 billion was 5.7 times last 12 months’ consolidated adjusted EBITDA of $298 million at the end of the period, an increase from 5.3 times at the end of the first quarter.
Shares of FWRD traded 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.
