Truckload carrier Celadon Group plans to buy the TL operations and trucking assets of fellow Indianapolis-based carrier Air Road Express. Steve Russell, Celadon’s chairman & CEO, said the deal does not include Air Road’s LTL, logistics, and warehousing businesses.
“Based on our evaluation of the business, we believe Air Road had a group of quality customers that will enhance our current lane flows, but suffered from the excessive cost structure that plagues many mid-sized carriers,” said Russell. “We expect to integrate the acquired operations promptly – optimizing the combined customer, driver, and equipment base to improve asset productivity.”
Air Road’s truckload business generated approximately $26 million in gross revenues including fuel surcharges in 2006. Russell expects Celadon to see financial benefits from this acquisition by September.
“We’d expect it to follow the pattern established in our acquisitions of Warrior Xpress, Digby Truck Lines, CX Roberson and Highway Express during the past few years,” he said. “In those acquisitions, as in this one, our goals are to continue to broaden our customer base with quality customers, add density in our primary traffic lanes, and gain experienced drivers.”
