Indianapolis-based Celadon Group Inc. (NYSE: CGI) has announced a joint venture with Colorado-based Element Transportation LLC. Celadon says the joint venture will have more than 10,000 tractors to lease to trucking fleets.
The leasing assets being held by the new joint venture are managed by Celadon’s Quality Companies LLC business unit. Celadon Chief Executive Officer Paul Will says the company has been working with Element since August to finalize the joint venture agreement.
"We have been working diligently with the Element team to structure a high quality, well-capitalized business that will provide excellent transportation assets and high quality service to our customers," Will said in a statement. "With the interests and investments of Element and Celadon strongly aligned, an experienced management team, and the resources to optimize leasing assets, the joint venture has the components for success. The support and business acumen of the Element team were instrumental to the process, and we appreciate their partnership."
Celadon says the joint venture will be one of the leading lessors to the market. Element CEO Bradley Nullmeyer says the agreement expands his company’s position in the Class 8 tractor sector, allowing Element to broaden its range of fleet services.