WINNIPEG, Man. – Bison Transport has acquired Celadon’s container-on-flat-car intermodal operations in an all-cash transaction.
Terms of the deal weren’t disclosed, but Celadon reports that the division contributed US $20.2 million in revenue during 2018. Personnel, drivers, customer and supplier relationships, and the containers and chassis themselves were all included in the transaction.
Under the deal, Celadon has agreed to refer intermodal work to Bison in exchange for an undisclosed referral fee.
“This represents another important step in divesting our non-core businesses and returning to our roots as a leading North American truckload carrier,” said Paul Svindland, chief executive officer of Indiana-based Celadon.
“Our intermodal business platform is approximately five times larger than it was five years ago,” said Brad Chase, Bison’s vice-president — logistics and multimodal. “This strategic move supports our corporate initiative for continued growth in our asset-light business platforms.”
Bison offers full truckload service, full-service logistics, intermodal, less-than-truckload, dedicated fleet operations, yard management, and warehousing and distribution services.
Celadon’s logistics business was sold to TA Services, a PS Logistics subsidiary, effective April 1. That division had contributed US $139 million in revenue during the company’s most recent fiscal year ending June 30.
Earlier this week, Celadon also reached a settlement with the U.S. Department of Justice and Securities and Exchange Commission (SEC) in a case that involved a conspiracy to commit securities fraud and falsify books, records and accounts. The company is to pay more than US $42 million in restitution and related administration expenses. The first $5 million is to be paid within 90 days, and the remainder on June 30, 2024.