INDIANAPOLIS, April 26, 2019 /PRNewswire/ -- Celadon Group, Inc. ("Celadon," the "Company," "we," or "us") (OTCPink: CGIP) announced today that it has disposed of substantially all of the assets associated with its North American "container on flat car" intermodal operations (collectively, the "COFC Intermodal Division") in an all cash transaction.
The Company continued its strategic plan to streamline operations, reduce total debt, and focus on its core business by completing the sale of the COFC Intermodal Division to Bison Transport ("Bison"), one of Canada's largest transportation companies. The sale includes operating personnel, drivers, customer and supplier relationships, containers, and chassis, among other assets. The COFC Intermodal Division contributed approximately $20.2 million in revenue to the Company's consolidated results for the calendar year ended December 31, 2018. As part of the transaction, the Company has agreed to refer certain future COFC intermodal work to Bison in exchange for an undisclosed referral fee and will also provide certain services during a transition period.
Paul Svindland, the Company's Chief Executive Officer, commented: "We are pleased to have completed the sale of our COFC Intermodal Division. This represents another important step in divesting our non-core businesses and returning to our roots as a leading North American truckload carrier. I want to personally thank our intermodal employees and COFC Intermodal Division customers for their invaluable support over the last several years – I expect their transition to Bison will be a smooth one."
Financial terms of the transaction were not disclosed.
Celadon Group, Inc. (www.celadongroup.com), through its subsidiaries, provides long haul, regional, local, dedicated, intermodal, temperature-protect, and expedited freight service across the United States, Canada, and Mexico.
Forward Looking Statements
This press release contains certain statements that may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are subject to the safe harbor created by those sections and the Private Securities Litigation Reform Act of 1995, as amended. Such statements may be identified by their use of terms or phrases, including "expects," "expected," "will," "would be," "intends," "believes," and similar terms and phrases. Forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, which could cause future events and actual results to differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. In this press release, statements relating to transition of intermodal employees and customers, among others, are forward-looking statements. Actual results may differ from those set forth in the forward-looking statements. Readers should review and consider factors that could cause actual results to differ from expectations, and various disclosures by the Company in its press releases, stockholder reports, and filings with the U.S. Securities and Exchange Commission.
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Chief Executive Officer
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SOURCE Celadon Group, Inc.