Celadon Announces Canadian DealPosted: Updated:
Indianapolis-based Celadon Group Inc. (NYSE: CGI) is expanding its footprint in Canada. It has a deal to acquire selected assets from N. Yanke Transfer Limited in Saskatchewan. Celadon says the agreement, along with the acquisition of Hyndman Transport earlier this year, should bring its number of drivers in Canada to more than 800. November 18, 2013
INDIANAPOLIS -- Celadon Group, Inc. (NYSE:CGI) today announced an agreement to acquire selected assets of N. Yanke Transfer Limited (“Yanke”), based in Saskatoon, Saskatchewan. Yanke operates approximately 300 tractors, including more than 100 team expedited trucks, and generated approximately $90 million in revenue in 2012. The company comprises both domestic Canadian shipments and international shipments between Canada and the United States. Additional terms and conditions of the transaction were not disclosed.
With this acquisition, Celadon will continue to grow its international footprint and service offerings in Canada, with an increased presence in the western provinces. Celadon grew its western Canadian business earlier in the year with its acquisition of Hyndman Transport. Celadon will maintain a number of Yanke’s terminal locations throughout Canada.
The acquisition enters Celadon into container rail movements in Canada, which represents approximately $30 million of Yanke’s 2012 revenue. Paired with Celadon’s existing intermodal revenue in the U.S., the company now expects to generate approximately $60 million in annual revenue from rail shipments in North America.
“Yanke has been a well-respected Canadian truckload and multi-modal carrier that has provided a high level of dry van freight services for its customers since 1968,” stated Paul Will, Celadon President and CEO. “We believe this acquisition offers solid potential to expand our domestic Canada footprint, both over the road and utilizing the rail, to advance our overall service offering growth plans.
“We’re excited to work with Yanke management and look forward to continuing to provide the quality service that the Yanke core account base has come to expect. Based on previous acquisitions, we believe Celadon can enhance that service through upgraded equipment, advanced technology, additional assets, and an industry leading safety record,” said Will.
Russel Marcoux, CEO and President of N. Yanke Transfer Ltd., said, “The time has come for me to retire. I am happy to pass the Yanke torch to a company like Celadon that shares our same beliefs, values our work, and is committed to growing the company within the Canadian and US markets.”
Celadon anticipates having more than 800 drivers in its Canadian operations upon conclusion of this transaction, making the company one of the country’s largest carriers.
Celadon Group, Inc. (www.celadongroup.com), through its subsidiaries, provides long-haul and regional full-truckload freight service across the United States, Canada and Mexico. The company also owns Celadon Logistics Services, which provides freight brokerage services, less-than-truckload services, as well as supply chain management solutions, including warehousing and dedicated fleet services.
Source: Celadon Group Inc.