The Indianapolis-based trucking company Celadon Group said Tuesday it had purchased a 6.3 percent stake in USA Truck, a Van Buren, Ark.-based competitor.
Celadon said it acquired the shares because it believes USA Truck’s common stock “represented a potentially attractive investment at recent prices.”
Celadon added its “board and management team believe the truckload industry offers consolidation and other strategic opportunities as successful companies seek, among other things, additional capacity and services for customers, more diverse routes for drivers, and greater value and liquidity for investors.”
Celadon said it recently requested a meeting with the USA Truck’s issuer’s management “to discuss a possible association… potentially including a combination of the two companies. Depending on the outcome of these discussions, any such association, alliance or business combination could result,” it added.
But it said it did not know if USA Truck would “entertain any such discussions. Moreover, Celadon Group has not had the opportunity to evaluate whether or how the USA Trucks might be complementary or whether it was an attractive strategic fit.”
USA Truck acknowledged the investment by Celadon, revealed in a 13D filing with the Securities and Exchange Commission. It said “the views of our stockholders are very important to us and we carefully consider their input. Our board of directors will evaluate Celadon’s 13D filing in due course. We do not intend to comment further on this matter except as warranted by applicable laws and regulations.”
Celadon buys stake in USA Truck
