INDIANAPOLIS, Sept. 18,
2017 /PRNewswire/ -- Celadon Group, Inc. ("Celadon" or the
"Company") (NYSE: CGI) today announced that it has completed the
disposition of substantially all assets associated with its flatbed
trucking division (the "Flatbed Division") to a subsidiary of PS
Logistics, LLC. Financial terms were not disclosed.
The Flatbed Division assets included in the transaction
consisted primarily of leased and owned trailers, which were sold
in exchange for an assumption or satisfaction of the lease
obligations and cash, respectively. Celadon is also entitled to
certain post-closing goodwill payments. In addition, the
purchaser will enter into contracts covering up to 100 independent
contractor flatbed drivers, hire certain flatbed company drivers
and operations employees, and assume certain customer contracts
associated with the Flatbed Division.
Paul Svindland, Celadon's Chief
Executive Officer, commented: "Under the strategic plan adopted
over the past 30 days, our goal is to concentrate our resources on
core business lines where we add value to customers and have the
opportunity to generate acceptable returns over time. In our
portfolio of companies, several are high performers with steady
business levels and cash flow, and include dedicated, warehousing
and logistics, regional, and other value-added services. Our
historical Celadon irregular route NAFTA-focused truckload business
("CTSI") has had a difficult year from a profitability perspective
but offers a strong niche with longstanding customer
relationships. Our new management team determined that we had
neither the expertise nor the critical mass to compete in the
flatbed sector. Accordingly, we were pleased to offer our
people and customers a good home with one of the largest and most
successful flatbed operators in the U.S. The remaining CTSI
business is undergoing an intense improvement phase with multiple
initiatives taking hold into a rapidly improving freight
marketplace. We expect to continue to execute on our
strategic plan as we seek to refinance our capital structure."
"We are proud to welcome Celadon's Flatbed Division to the PS
Logistics family," said Scott Smith,
Chief Executive Officer of PS Logistics. "We look forward to
working with their great flatbed drivers and operations group."
About Celadon
Celadon Group, Inc.
(www.celadongroup.com), through its subsidiaries, provides
long-haul, regional, local, dedicated, intermodal,
temperature-protect, and expedited freight service across the
United States, Canada, and Mexico. The company also
owns Celadon Logistics Services, which provides freight brokerage
services, freight management, as well as supply chain management
solutions, including warehousing and distribution.
About PS Logistics
Founded in 2004, PS Logistics is
one of the largest and fastest growing flatbed transportation
solution providers in the United States. PS Logistics
provides full-service transportation services, including
asset-based transportation, brokerage, 3PL and supply chain
services. This hybrid model delivers optimal flexibility to address
customer's flatbed transportation needs in various industries
throughout the United States.
This press release contains certain statements that may be
considered forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended, and such
statements are subject to the safe harbor created by those sections
and the Private Securities Litigation Reform Act of 1995, as
amended. Such statements may be identified by their use of terms or
phrases, including "expects," "expected," "will," "would be,"
"intends," "goal," "believes," and similar terms and phrases.
Forward-looking statements are based upon the current beliefs and
expectations of our management and are inherently subject to risks
and uncertainties, some of which cannot be predicted or quantified,
which could cause future events and actual results to differ
materially from those set forth in, contemplated by, or underlying
the forward-looking statements. In this press release,
statements relating to post-closing goodwill payments, the
purchaser's post-closing actions with respect to drivers and
assumption of contracts, our strategic plan, achievement of our
improvement initiatives, the freight marketplace, and the
refinancing of our capital structure, among others, are
forward-looking statements. Actual results may differ
from those set forth in the forward-looking statements.
Readers should review and consider factors that could impact
results as provided in various disclosures by the Company in its
press releases, stockholder reports, and filings with the
Securities and Exchange Commission.
For more information:
Joe Weigel
Director of Communications
(317) 972-7006 Direct
jweigel@celadongroup.com
View original content with
multimedia:http://www.prnewswire.com/news-releases/celadon-group-completes-disposition-of-flatbed-division-300521076.html
SOURCE Celadon Group, Inc.