IBJNews

Rival trucking firm not interested in Celadon merger

Back to TopCommentsE-mailPrintBookmark and Share

USA Truck Inc. has a message for Indianapolis-based trucking rival Celadon Group Inc.: Move along.

Celadon in mid-October announced it had acquired a 6.3-percent stake in the smaller, Van Buren, Ark.-based trucking company, and it asked for a meeting to discuss a potential "association" between the two companies.

USA Trucking declined the invitation to meet with Celadon executives, the company said in a statement paired with its earnings report on Friday. USA Trucking cited recent management changes and its "desire to remain focused on increasing value through operational improvements."

The company lost $4.3 million in the quarter ended Sept. 30, on revenue of $102.6 million.

Celadon CEO Steve Russell did not have an immediate reaction to USA Truck's refusal to meet. He told IBJ on Monday morning that Celadon’s board will meet this week to discuss the issue, and the company will have a public statement at that time.

Shares of USA Truck soared almost 20 percent on Oct. 11, rising as high as $9.76 each, after Celadon reported its share purchase. Before the Celadon acquisition, USA Truck's shares had been down 38 percent on the year.

The Indianapolis trucking company paid $4.7 million for 658,000 shares, making it USA Truck's seventh-largest investor, according to Bloomberg data.

USA Truck's shares were down in early trading Monday, to $8.17, still well below the 52-week high of $14.83.

Meanwhile, Celadon shares rose 2 percent, trading recently for $10.92.

An acquisition of USA Truck would be a departure from Celadon's historical acquisition strategy, which involves smaller, privately held carriers, Stifel Nicolaus analysts noted in an Oct. 12 report.

Celadon has a market value of $219 million, more than double USA Truck’s $102 million, Bloomberg data show.

Stifel said the deal could add $3 million, or about 13 cents per share, to Celadon's bottom line. The share purchase, Stifel said, reflects Celadon's view that shares of USA Truck were "underpriced given the age/condition of its equipment and the improving truckload industry fundamentals (provided that we do not enter a double dip recession)."

USA Truck employs 2,900 people, while Celadon has 3,500 employees.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Those of you yelling to deport them all should at least understand that the law allows minors (if not from a bordering country) to argue for asylum. If you don't like the law, you can petition Congress to change it. But you can't blindly scream that they all need to be deported now, unless you want your government to just decide which laws to follow and which to ignore.

  2. 52,000 children in a country with a population of nearly 300 million is decimal dust or a nano-amount of people that can be easily absorbed. In addition, the flow of children from central American countries is decreasing. BL - the country can easily absorb these children while at the same time trying to discourage more children from coming. There is tension between economic concerns and the values of Judeo-Christian believers. But, I cannot see how the economic argument can stand up against the values of the believers, which most people in this country espouse (but perhaps don't practice). The Governor, who is an alleged religious man and a family man, seems to favor the economic argument; I do not see how his position is tenable under the circumstances. Yes, this is a complicated situation made worse by politics but....these are helpless children without parents and many want to simply "ship" them back to who knows where. Where are our Hoosier hearts? I thought the term Hoosier was synonymous with hospitable.

  3. Illegal aliens. Not undocumented workers (too young anyway). I note that this article never uses the word illegal and calls them immigrants. Being married to a naturalized citizen, these people are criminals and need to be deported as soon as humanly possible. The border needs to be closed NOW.

  4. Send them back NOW.

  5. deport now

ADVERTISEMENT