Celadon Acquires Pennsylvania CompanyPosted: Updated:
Indianapolis-based Celadon Group Inc. has announced the acquisition of logistics and distribution services company A&S Services Group LLC. Celadon Chief Executive Officer Paul Will says the move will complement the company's strategic footprint. October 27, 2014
INDIANAPOLIS, Ind. -- Celadon Group, Inc., one of North America's premier transportation and logistics companies, today announced the acquisition of A&S Services Group, LLC ("A&S"). A&S is a leading regional for-hire and dedicated truckload carrier based in New Freedom, PA. A&S's fleet operations provide dry van transportation services almost exclusively and principally serve the Mid-Atlantic and Northeast regions. A&S is also a major supplier of logistics, warehousing and distribution services in the area.
Celadon anticipates the present management team to remain in place and continue to operate independently under the A&S Kinard name and with the A&S personnel, principles and procedures. Drivers and administrative A&S associates as well as customers, should notice little change moving forward.
Celadon paid $55 million at closing and assumed $31.8 million in operating leases that Celadon will capitalize and record on its balance sheet for approximately $74.9 million of tangible net assets. Of the closing amount, $2.75 million was held in escrow to secure indemnification obligations.
"I look forward to bringing the vast, leading edge resources of Celadon to our customer base," commented Ken Buck, President of A&S. "This should help further accelerate our aggressive growth plans in the Mid-Atlantic and the Northeast."
"The various companies of A&S will be a terrific complement to our strategic footprint," commented Paul Will, Celadon President and Chief Executive Officer. "Ken Buck has assembled an excellent operating team, focused on providing a high service level to customers. We plan to keep his executive team and administrative organization in place, while providing the necessary resources to expand operations."
A&S has origins in transportation dating back to the turn of the 20th century. At the present time, A&S is approximately a 500 truck, 1,500 trailer asset-based carrier with approximately 500,000 square feet of warehouse space. A&S also boasts one of the most experienced and qualified fleets of driving professionals in the region.
"A&S is an excellent company with exceptional people that will enhance and expand Celadon's leadership position in the transportation and logistics industry," commented Will. "We're pleased to have A&S as part of the Celadon family and look forward to building on the synergies that this new relationship is expected to bring to the customers we serve."
Source: Celadon Group Inc.