Celadon Group Inc. has announced one of its wholly owned subsidiaries has purchased the truckload, intermodal and brokerage business of Continental Express Inc. for approximately $24 million.
The purchase also includes approximately 400 tractors and 1,100 trailers. According to the seller’s unaudited financial statements, the company generated approximately $92 million in gross revenue in 2007.
"Based on our evaluation of the business, we believe Continental has quality customers and drivers, but suffered from a cost structure that plagues many mid-sized carriers,” said Celadon chairman & CEO Steve Russell. “As part of the integration process, we expect to optimize the combined customer, driver, and equipment base to improve asset productivity. We believe we can enhance the service to Continental’s former customers through an upgraded equipment fleet, excellent technology, more available assets for dispatch, and an outstanding safety record. We expect the acquired operations to be accretive beginning in the March 2009 quarter."