As it works to streamline its operations and reduce its debt, Indianapolis-based trucking company Celadon Group Inc. has sold its logistics division to Mansfield, Texas-based T.A. Services, Celadon announced Monday.
As part of the transaction, Celadon President and Chief Operating Officer Jon Russell is expected to join T.A. Services’ management team. Russell, the son of Celadon co-founder Steve Russell, is the former president of Celadon Logistics.
Earlier this month, Celadon announced it had sold its Pennsylvania-based A&S Kinard and Buckler Transport subsidiaries to New Brunswick, Canada-based Day & Ross Freight for $139.5 million.
Monday’s announcement did not mention how much T.A. Services paid for Celadon Logistics. Celadon CEO Paul Svindland told IBJ that the company would disclose the purchase price when it files its official disclosure with the U.S. Securities and Exchange Commission.
But the announcement did say that the A&S Kinard, Buckler and Celadon Logistics sales together reduced Celadon’s outstanding borrowings and capital leases by about $185 million.
Celadon developed its logistics division as a third-party logistics provider offering supply chain management, warehousing and truck brokerage services.
Celadon Logistics currently operates four logistics offices and 11 warehouses across seven states with more than 500 employees. Celadon Logistics currently operates 4 logistics offices and 11 warehouses across 7 states with over 500 employees.
As part of the transaction, Celadon will continue to have access to the Logistics platform, and it has committed not to conduct independent brokerage activities, the statement said.
Celadon is working to correct numerous financial, operational and accounting issues that first came to light in May 2017. In October 2017, the company revealed that it was under investigation by the U.S. Securities and Exchange Commission. And, in April 2018, Celadon said its problems were much older and deeper than expected, and that the company had likely overstated some of its earnings by as much as $250 million during a three-year period that ended in 2016.