Washington, D.C., March 2013
HCI Equity Partners announces the sale of Total Quality, Inc. (“TQI”) to Forward Air Corporation. TQI is a premium provider of maximum security and temperature-controlled services to the pharmaceutical and life sciences industries, and a portfolio investment in HCI Equity Partners III, L.P.
Headquartered in Grand Haven, MI, TQI had 2012 revenues of approximately $54.8 million. The purchase price was $66 million (or approximately 8x TQI’s 2012 EBITDA) plus an earn-out of up to $5 million based upon TQI’s performance in 2013 and 2014. TQI was acquired on a cash free, debt free basis with an adjustment for working capital. The transaction will be funded by Forward Air’s cash reserves and is expected to be accretive to its 2013 earnings.
Founded in 1992, TQI utilizes industry-leading temperature-controlled equipment, 24-hour real-time monitoring and tracking technology, and layered security features and practices to provide its customers with a level of service that is unmatched in the industry today. In addition to its core pharmaceutical services, TQI also provides truckload and less-than-truckload brokerage transportation services.