Asset-light transportation provider Forward Air announced Monday that it has reached an agreement to acquire intermodal drayage provider Chickasaw Container Services (CCS).
The transaction is expected to close in November and will be cash funded. The purchase price was not disclosed.
For more than 30 years, CCS has provided depot, rolling and trucking services from its headquarters in Mobile, Alabama. In 2000, the company opened a second location in Memphis, Tennessee. Both locations also offer container and chassis storage and sales, as well as repair and inventory management. More than 3,000 units can be stored per location.
CCS has registered 67 trucks, according to the Federal Motor Carrier Safety Administration.
The deal allows Forward (NASDAQ: FWRD) to add mobile to its intermodal offering. It has an existing operation in the Memphis market, Value Logistics, which it acquired in 2020.
Forward acquired a Chicago-based drayage company in early 2021 and two intermodal service providers in Minnesota’s Twin Cities area a year ago. In May, it announced the addition of its first West Coast drayage provider near Seattle.
“Our intermodal business has been a key area of growth for Forward over the past few years,” Chairman, President and CEO Tom Schmitt said in a press release after the market close. “Chickasaw Container Services has an experienced team and shares our commitment to precision execution.”
Forward’s intermodal segment had revenue of $395 million for the 12 months ended September 30, nearly double 2020 sales. Intermodal is just one portion of Forward’s $2 billion freight platform.
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