Forward Air Reports Sale Of Its Final Mile Business To Hub Group For An Estimated Total Cash Consideration Of $262M
Portfolio Pulse from Benzinga Newsdesk
Forward Air Corporation has sold its Final Mile business to Hub Group for an estimated total cash consideration of $262 million. The Final Mile business includes approximately 45 locations and over 640 employees, all of whom will transfer to Hub Group as part of the deal.
December 20, 2023 | 9:10 pm
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POSITIVE IMPACT
Forward Air Corporation has divested its Final Mile business to Hub Group, which could streamline its operations and financials, potentially leading to a positive market reaction.
The sale of the Final Mile business could be seen as a strategic move for Forward Air to streamline its operations and focus on its core services. The cash infusion from the sale may also be used to pay down debt, invest in core areas, or return capital to shareholders. This could be viewed positively by investors in the short term.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100
POSITIVE IMPACT
Hub Group's acquisition of Forward Air's Final Mile business for $262 million expands its service offerings and workforce, which could be seen as a growth strategy, potentially impacting the stock positively.
Hub Group's acquisition of the Final Mile business from Forward Air represents a significant expansion in terms of locations and employee base. This move could be interpreted as a growth strategy, enhancing Hub Group's service capabilities and market presence. The market may respond positively to this expansion if it aligns with Hub Group's strategic goals.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 100