Indianapolis-based Celadon Group Inc. is getting a financial infusion as it continues its ongoing turnaround. The trucking company said it received $165 million in financing. Celadon Chief Executive Officer Paul Svindland says the money will go towards replacing some of its aging 2,000 tractor fleet over the next several quarters.
“These new trucks will dramatically lower our costs, enhance productivity, and improve the lives and safety of our professional drivers,” said Svindland. Celadon expects to receive 100 new trucks this month and another 1,800 over the next several quarters. The company took delivery of its first batch of 100 rigs in May.
“Beyond the fleet refresh, we must return to our historical roots as a high-service, low-cost provider to our customers. We will have all the tools, and it is now up to our team to execute our plan," Svindland said. As part of the plan, Celadon in April sold the assets of its North American "container on flat car" intermodal operations to a Canadian company. Svindland said the sale helped the company to focus on its core business.
“Despite numerous headwinds, including an older tractor fleet, we have achieved meaningful improvements in revenue per seated tractor, customer service, and safety,” said Svindland.
Some of those headwinds could be attributed to the U.S. Department of Justice securities fraud investigation against the company. In April, Celadon entered into a deferred prosecution agreement with the DOJ and agreed to pay more than $42 million in restitution.
Svindlind says the company expects to complete its financial statement audit in 2020. After that step, Celadon intends to seek a listing on a national stock exchange.