Celadon Group Acquires Truckload Van Assets From Air Road Express
Jun 5, 2007 3:30 PM
Celadon Group Inc. announced today that one of its wholly owned subsidiaries has purchased the truckload business and certain tractors and trailers of Air Road Express Inc. Air Road will continue to provide asset-based logistics services with its LTL consolidation and warehousing operations.
According to the seller's unaudited financial statements, the Indianapolis-based transportation company generated approximately $26 million in gross revenue from its truckload operations, including fuel surcharge, in 2006.
Steve Russell, Chairman and Chief Executive Officer, stated, "We are delighted with the Air Road acquisition and expect it to follow the pattern established in our acquisitions of Warrior, Digby Truck Lines, CX Roberson and Highway Express during the past few years. 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. In February 2007, Celadon acquired certain assets of Warrior Xpress and in October 2006, Celadon acquired certain assets of Digby Truck Lines.
"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. 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 Air Road's former customers through an upgraded equipment fleet, excellent technology, more available assets for dispatch, and an outstanding safety record."
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