Celadon Group Inc. has announced that one of its wholly-owned subsidiaries today purchased the truckload, intermodal and brokerage business, as well as approximately 400 tractors and 1,100 trailers of Continental Express Inc. for approximately $24 million. According to the seller’s unaudited financial statements, the Little Rock, Arkansas-based company generated approximately $92 million in gross revenue in 2007.
"We are delighted with the Continental acquisition and expect it to follow the pattern established in our acquisitions during the past six years,” said Celadon Chairman and Chief Executive Officer Steve Russell. “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.
"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. We expect to integrate the acquired operations promptly. 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."