INDIANAPOLIS, Ind. – Celadon Group has sold the assets used in its logistics business in an all-cash deal with TA Services, a subsidiary of PS Logistics.
The deal was part of a broader strategic plan to streamline operations, reduce debt, and focus on core trucking activities, Celadon says.
The logistics division contributed US $139 million in revenue during Celadon’s fiscal year that ended June 30, 2018. Celadon will continue to access the logistics platform on a revenue-sharing basis, but it has agreed not to conduct independent brokerage operations.
“Over the past several quarters, we have divested the former Quality business, the joint venture with Element, our flatbed business, our West Coast dedicated business, A&S/Buckler, and now logistics,” said Paul Svindland, Celadon’s chief executive officer. “Celadon has returned to its roots as an asset-based truckload carrier serving the North American market, with particular focus on the eastern half of the United States and cross-border traffic with Mexico and Canada.”
Combined with the recent sale of A&S Kinard and Buckler subsidiaries, the TA Services deal helps reduce Celadon’s outstanding borrowings and capital leases by about US $185 million.