As part of its continuous turnaround efforts, Indianapolis-based trucking company Celadon Group Inc. has sold its flatbed trucking division to Birmingham, Alabama-based PS Logistics LLC.
Celadon revealed on Monday that it had finished the deal, in which PS Logistics presumed the lease responsibilities for Celadon’s fleet of leased trailers and paid money for Celadon-owned trailers.
In other parts of the deal: Celadon is entitled to particular post-closing goodwill payments. PS Logistics consented to hire specific Celadon flatbed business drivers and operations employees, assume specific flatbed customer agreements and participate in agreements that cover to 100 of Celadon’s independent professional flatbed chauffeurs.
Particular financial terms were not revealed. Celadon declined to comment even more, and IBJ was unable to reach PS Logistics Monday morning.
PS Logistics, developed in 2004, concentrates on running irregular paths on flatbeds that carry whatever from construction products to pipelines and steel plates.
Irregular paths, likewise referred to as over-the-road paths, involve moving freight to any location and at any time as needed. These routes vary from devoted paths, where drivers follow regular schedules.
Celadon CEO Paul Svindland stated the business is refocusing on its core line of work, which resulted in the decision to obtain from flatbed trucking.
Flatbed Trucking Service Division
“Our new management group determined that we had neither the know-how nor the crucial mass to contend in the flatbed sector,” Svindland said in a ready statement.
The move belongs to Celadon’s larger efforts to conquer considerable monetary obstacles.
In May, Celadon said it expected to publish a $10 million loss for the quarter that ended in March, in large part since of its irregular route operations. The company also divulged that its latest annual monetary report, and those for the two subsequent quarters, must not be trusted since of questions raised by the auditor BKD LLP.
In the annual report, the company reported net income of $24.8 million on $1.07 billion in earnings. Celadon has not yet released an amended variation of the report.
Celadon has likewise had some executive-level management modifications just recently. In July, the business generated Svindland to change former CEO and board chairman Paul Will.
Flatbed Truck, Cross Docking, and Transloading
The trucking company is still working to refinance its capital structure.
Celadon has gotten in and out of the flatbed trucking service a few times because the business was included in 1986.
In 2001, Celadon sold its Mooresville, North Carolina-based Cheetah Transportation Inc. flatbed trucking business.
Then, in June 2014, Celadon returned into the flatbed service when it got Butler, Indiana-based Evans Group Inc. This was throughout a period when Celadon was actively diversifying its service, mainly through acquiring other companies.
Shares of Celadon were trading at $6.15 late Monday morning, up 10 cents. The stock has actually traded in between $1.30 and $9.75 per share over the past 52 weeks.