Celadon Group Announces Acquisition of Truckload Van Assets from Warrior Xpress
INDIANAPOLIS-- Celadon Group Inc. (Nasdaq:CLDN) announced that on Wednesday, Feb. 28, 2007, one of its wholly-owned subsidiaries purchased the truckload business and certain tractors and trailers of Warrior Services Inc. d/b/a Warrior Xpress ("Warrior") for approximately $8.3 million. According to the seller's unaudited financial statements, the Charles City, Virginia-based transportation company generated approximately $20 million in gross revenue in 2006.
Steve Russell, Chairman and Chief Executive Officer, stated, "We are delighted with the Warrior acquisition and expect it to follow the pattern established in our acquisitions of Digby Truck Lines, CX Roberson and Highway Express during the past few years. In those acquisitions, as in this one, our goals are to continue to broaden our customer base with quality customers, add density in our primary traffic lanes, and gain experienced drivers. In October 2006, Celadon acquired certain assets of Digby Truck Lines.
"Based on our evaluation of the business, we believe Warrior had a core group of quality customers and drivers, but suffered from the excessive cost structure that plagues many mid-sized carriers. We expect to integrate the acquired operations promptly. As part of the integration process, we expect to optimize the combined customer, driver, and equipment base to improve asset productivity. We believe we can enhance the service to Warrior's former customers through an upgraded equipment fleet, excellent technology, more available assets for dispatch, and an outstanding safety record.
"At Celadon, our driver turnover has been significantly better than the industry average over the past few years, and we plan to work hard to retain the Warrior drivers. In the short-term, the additional Warrior drivers will retain their units until seated with newer equipment. We believe this strategy will allow us to focus on enhancing our freight mix, assist with driver retention and minimize the risk of unseated tractors following the acquisition. We expect the acquired operations to be accretive beginning in the June 2007 quarter."
Celadon Group Inc. (www.celadongroup.com), through its subsidiaries, primarily provides long-haul, full-truckload freight service across the United States, Canada and Mexico. The company also owns TruckersB2B Inc. (www.truckersb2b.com) which provides cost savings to member fleets.
Contacts
Craig M. Koven,
Communications Manager,
Celadon Group Inc.,
800-CELADON Ext. 7041,
317-972-7041 Direct,
317-408-4859 Mobile,
ckoven@celadontrucking.com
