A slowdown in trucking M&A was met by interest rate cuts for the first time in more than four years in 2024. The anticipation of lower lending rates fostered more constructive transaction dialogues during the year, but deal count across the industry was still off 5% from 2023, according to data compiled by the research team at Left Lane Associates.
The supply chain M&A advisory firm said there is noise in the number as some deals were paused until after the election, which pushed closings into the first quarter of 2025.
“We are seeing a lot of positive M&A momentum leading into Q1 and beyond as we move further away from the tail end of the freight recession and with the more business-friendly administration coming into power,” Left Lane’s president, Peter Stefanovich, told FreightWaves. “We are anticipating a substantial uptick in sellers coming back to the M&A market, especially those that were planning on selling in 2023 and 2024.”
Well-capitalized companies generating significant cash flow were active again in 2024. Some companies executed strategic acquisitions, with others making more transformational deals. Some even provided updates on possible spinoffs. There were several notable deals in trucking in 2024. Here’s a recap in chronological order.
Shareholder lawsuits, court injunctions and a legal back-and-forth between acquirer and target were the 2023 headlines that followed Forward Air’s (NASDAQ: FWRD) announcement it would merge with freight forwarder Omni Logistics. The fallout continues after Forward grudgingly closed on the deal in late January.
When announced, an initial price tag of $3.2 billion drew outcry from investors who were miffed they weren’t given a vote. A high debt load and a shift in control to Omni’s private equity stakeholders were among chief complaints. Some of Forward’s customers also had concerns that their linehaul provider (Forward) was acquiring one of their competitors.
Forward has revamped its board and executive team this year as it navigates a course that includes both its legacy expedited less-than-truckload business and its newfound air and ocean freight forwarding offering. But some shareholders haven’t dropped an effort to effect change at the company. The group views Forward’s current strategy and high debt leverage (5.4 times adjusted earnings before interest, taxes, depreciation and amortization) as untenable.
Shareholders have called on Forward’s board to engage in strategic alternatives, including a potential sale to private equity. Taking the company private would allow it to iron out a marketing strategy and fix its balance sheet without the burden of quarterly reporting to the public. FreightWaves previously reported that Forward had retained investment bankers to explore a sales process, but the company hasn’t commented on the matter.
