Celadon Offloads Business Unit
INDIANAPOLIS - Indianapolis-based Celadon Group Inc. has sold the assets of its North American "container on flat car" intermodal operations to Bison Transport in Canada. Financial terms of the all-cash deal are not being disclosed.
The company says the sale is part of its continued strategic plan to streamline operations, reduce debt, and focus on its core business. The sale includes operating personnel, drivers, customer and supplier relationships, containers, and chassis, among other assets.
"We are pleased to have completed the sale of our COFC Intermodal Division," said Paul Svindland, chief executive officer of Celadon. "This represents another important step in divesting our non-core businesses and returning to our roots as a leading North American truckload carrier."
Celadon says it has agreed to refer certain future COFC intermodal work to Bison in exchange for an undisclosed referral fee. The company will also provide certain services during a transition period.
The sale is the second business unit divestiture this month for Celadon. The company also sold its logistics business division to TA Services Inc. in Texas. Financial terms of the deal were also not disclosed, however Celadon says the proceeds were used to pay transaction expenses, reduce debt and provide additional liquidity.