2024-01-24 05:46:19 ET
Summary
- Forward Air and Omni Logistics have reached a settlement agreement in their legal battle over a merger, with the transaction set to close on similar terms to the original agreement.
- The deal structure includes the issuance of common and preferred shares, with potential dilution and risks for common shareholders.
- The deal brings a significant valuation multiples expansion that coupled with higher debt increases the downside risk to around 40%.
Forward Air (FWRD) is in the midst of a legal battle with Omni Logistics after the two companies agreed on a merger in 2023. Forward is trying to walk away from the deal and Omni sued them in Delaware to force the execution of the transaction. Today the parties reached a settlement agreement that barely moves the needle, and the transaction is now set to close on terms very much similar to the original ones....
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For further details see:
Forward Air: Understated Downside Risk As The Deal Is Set To Close