On January 23, 2014 Forward Air Corporation announced it signed an agreement to buy Profit Tools customer, Central States Trucking (CST). Founded in 1980, CST provides industry leading container and intermodal drayage services primarily in the Midwest region of the United States.
Headquartered in Bensenville, IL, CST operates a seven terminal network with approximately 500 office employees and drivers. 2013 unaudited revenue for CST was approximately $66 million. The purchase price will be $95.6 million, which is approximately eight times 2013 adjusted EBITDA.
CST became a Profit Tools customer in 2003. Since implementing Profit Tools scalable Intermodal Transportation Management Software, CST has grown their business to become a market leader in the Midwest, while remaining as cost effective as possible. Additionally, many customers have found CST's suite of technology products, including those provided by Profit Tools, to be the best in the industry.
In announcing the merger, Bruce A. Campbell, Chairman, President and CEO of Forward Air Corporation, said, "We are very excited about the acquisition of CST. For a number of years we have had the desire to enter the drayage space via purchase of a company with a scalable platform. CST not only provides that platform, but does so while achieving the high margins and low asset intensity that our shareholders have come to expect from us.”
"Our mission at Profit Tools is to help customers improve financial performance and grow by lowering costs, increasing revenue and enhancing customer satisfaction," said Brian Widell, President and Owner of Profit Tools. "CST has been a Profit Tools customer for over 10 years. We're thrilled about their success and proud to be a strategic business partner. It's very gratifying to see our Transportation Management Software contribute to our customer's success by delivering real business value."