Celadon Group has sold its flatbed trucking division to PS Logistics as it seeks regain its footing a leading trucking provider. Terms of the deal were not disclosed.
According to a press release, the flatbed division assets included in the transaction consisted primarily of leased and owned trailers, which were sold in exchange for an assumption or satisfaction of the lease obligations and cash, respectively.
“Under the strategic plan adopted over the past 30 days, our goal is to concentrate our resources on core business lines where we add value to customers and have the opportunity to generate acceptable returns over time,” said Paul Svindland, Celadon’s CEO. “In our portfolio of companies, several are high performers with steady business levels and cash flow, and include dedicated, warehousing and logistics, regional, and other value-added services. Our historical Celadon irregular route NAFTA-focused truckload business has had a difficult year from a profitability perspective but offers a strong niche with longstanding customer relationships.”
PS Logistics is one of the largest flatbed operators in the U.S.
“We are proud to welcome Celadon's flatbed division to the PS Logistics family," said Scott Smith, CEO of PS Logistics. “We look forward to working with their great flatbed drivers and operations group.”
Celadon has had a difficult 2017, with an investigation into accounting practices and several executives leaving the company. Svindland was hired in August.
“Our new management team determined that we had neither the expertise nor the critical mass to compete in the flatbed sector,” he said. “Accordingly, we were pleased to offer our people and customers a good home with one of the largest and most successful flatbed operators in the U.S. The remaining CTSI business is undergoing an intense improvement phase with multiple initiatives taking hold into a rapidly improving freight marketplace. We expect to continue to execute on our strategic plan as we seek to refinance our capital structure.”
PS Logistics provides full-service transportation services, including asset-based transportation, brokerage, 3PL and supply chain services.
Did you know?
According to Navigant Research, there are currently about 1,000 all-electric medium-duty trucks in operation in the U.S. today. That is expected to reach between 2,500 and 3,500 by 2020.
“The death of the combustion engine is not today, not tomorrow, not 10 years from now, because the combustion engine is the [workhorse of long haul].”
- Lars Stengvist, CTO, Volvo Group and EVP, Volvo Group Truck Technology
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New Celadon CEO Paul Svindland told FreightWaves in August he would be evaluating all divisions within the company and some may be sold off if they didn’t fit with the company’s restructuring plan. That started yesterday as Celadon sold its flatbed division to PS Logistics, giving the division new life with a leading flatbed carrier and Celadon a slimmer focus.
Hammer down everyone!