Activist investor Ancora says Forward Air should consider sale following 'lost decade'

In an open letter to Forward Air Corporation's (NASDAQ:FWRD ) Board, activist investor Ancora Holdings Group urged the company to consider a sale, citing a "lost decade" of poor financial performance and shareholder returns.

In the letter to Forward Air, Ancora, which is a top ten shareholder of the company with a 4% stake, emphasized the need for a strategic review, highlighting the company’s recent struggles, particularly following the debt-funded acquisition of Omni Logistics.

"The company’s reversion to old habits and its debt-funded acquisition of Omni Logistics, LLC (“Omni”) have wiped out a tremendous amount of shareholder value," said Ancora.

Elsewhere, Ancora pointed out that Forward Air's total shareholder return (TSR) has significantly underperformed across multiple time frames, with a 1-year TSR of -88.05% compared to the S&P 500's 20.16% gain.

The firm expressed concern that remaining in the public market would require flawless execution to fix the company’s leveraged balance sheet and achieve deal-related synergies in a challenging freight market.

"Forward Air now stands at a crossroads. If the Company remains in the public market, it will need to flawlessly execute to achieve deal-related synergies, cut excess costs, fix its highly levered balance sheet and grow in a profitable manner," they stated.

The letter also revealed that other parties have shown interest in acquiring Forward Air, and Ancora believes that now is the time for the Board to engage with these potential buyers.

The firm argued that a sale could offer "meaningful premiums" relative to the company's current and unaffected share prices, protecting shareholders from further value destruction.

Ancora concluded by warning the Board that failing to act on this overwhelming consensus could lead to a "formidable campaign" to replace several Board members – particularly those who pushed through this year’s disastrous acquisition – at the 2025 Annual Meeting of Shareholders.

Source: Investing.com