Bulletin: Forward Air Corp.'s Potential Termination Of Its Merger With Omni Logistics Doesn't Currently Affect Its Credit Quality

This report does not constitute a rating action. NEW YORK (S&P Global Ratings) Nov. 3, 2023--S&P Global Ratings today said that Forward Air Corp.'s (BB-/Stable/--) decision to explore the termination of its announced merger with Omni Logistics LLC, citing a failure by Omni to comply with terms of the merger agreement, could potentially weaken our view of the company's business risk profile due to its reduced scale, scope, and diversity as a stand-alone entity. In response, Omni has filed a lawsuit to enforce the merger stating that it has satisfied its obligations under the agreement. We view Omni?s freight forwarding-related segments as complementary to Forward?s domestic operations and believe they will provide it with the means to accelerate the ongoing

...November 3, 2023 This report does not constitute a rating action. NEW YORK (S&P Global Ratings) Nov. 3, 2023--S&P Global Ratings today said that Forward Air Corp.'s (##-/Stable/--) decision to explore the termination of its announced merger with Omni Logistics LLC, citing a failure by Omni to comply with terms of the merger agreement, could potentially weaken our view of the company's business risk profile due to its reduced scale, scope, and diversity as a stand-alone entity. In response, Omni has filed a lawsuit to enforce the merger stating that it has satisfied its obligations under the agreement. We view Omni's freight forwarding-related segments as complementary to Forward's domestic operations and believe they will provide it with the means to accelerate the ongoing development of its sales channel to pursue direct sales to wholesale clients. The proposed financing is a step change for Forward's historical debt and leverage profile. If it terminates the merger, management could pursue...

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