Subscribe to our free, weekly email newsletter!


Celadon Trucking Services acquires operating equipment from Teton Transportation

By Jeff Berman, Group News Editor
March 06, 2012

Last week, Celadon Group subsidiary, Celadon Trucking Services Inc., said it purchased a “significant portion” of the operating equipment of Knoxville, Tenn.-based Teton Transportation Inc.

Celadon officials said the deal includes the purchase of roughly 180 tractors and 280 trailers. Financial terms were not disclosed.

“We are excited with the Teton acquisition, as it fits well within the strategy we have executed during similar acquisitions over the last few years,” said Paul Will, Celadon Group president and COO, in a statement. “As with previous acquisitions, our goals are to continue to broaden our customer base with quality customers, add density in our primary traffic lanes, and gain experienced drivers

Will added that based on Celadon’s evaluation of Teton’s business, it felt Teton had a solid, core group of quality customers and drivers.

The acquisition of Teton assets by Celadon follows a December acquisition of a significant portion of the assets of YRC Worldwide’s truckload subsidiary Glen Moore to Celadon. Financial terms of that deal were not disclosed, and YRCW officials declined to disclose how many Glen Moore assets were involved in the transaction.

Celadon Group Inc. Vice President Sales and Marketing Monte Horst told LM that this acquisition is part of Celadon’s long term strategy to add density in its primary traffic lanes, maintain its driver seated count, and provide additional services to its key shippers with respect to dedicated, logistics, TOFC (trailer on flat car), and in this case, an expanded regional offering.

In terms of the biggest benefits of this acquisition, Horst pointed to added density in Celadon’s primary traffic lanes, increased driver seated count, and additional services provided with the expanded southeast regional offering.

When asked if this acquisition and the Glen Moore acquisition are an indication that Celadon is adding capacity, Horst said that Celadon “will see an increase in its capacity offering due to the merger, but the net affect of the acquisition will actually dictate an overall decrease in capacity with respect to Celadon and Teton’s combined pre-deal levels, do to the fact that some Teton drivers will not meet Celadon’s driver/CSA standards and thus were not pre-qualified to receive employment offers.”

Horst said that Teton had a customer base of more than 400 customers and with a few exceptions, Celadon will be taking a strategic approach to focus on the top 90, which are predominantly overlap customers with which Celadon was already doing business.

Teton has roughly 110 customers. Horst said Celadon made employment offers to all drivers that met Celadon pre-employment standards and said that Celadon plans to maintain a small administrative/facility staff in Knoxville. 

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

For the fourth quarter of 2014, UPS said it anticipates adjusted diluted earnings per share of roughly $1.25, with full-year 2014 adjusted diluted earnings per share at $4.75, which represents a 3.9 percent annual gain over 2013’s adjusted earnings per share of $4.57, with full-year 2014 diluted earnings pegged at around $3.28 per share, which is 28.9 percent below 2013’s $4.61.

In recently issued research and data, JLL pointed out that its market data indicates rents are on the rise, with companies on the hunt for warehouse and distribution space.

U.S. Carloads were up 0.3 percent annually at 290,963, and intermodal at 260,893 containers and trailers dropped 2.4 percent compared to the same week last year.

Researchers say the ships are operating in international waters with a "worrying lack" of regulation, adding that they could pose a threat to regional peace and stability.

Compared to November, spot market freight volume was up 3.0 percent, according to the DAT North American Freight Index.

Article Topics

News · Trucking · Celadon · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA