(By Balaseshan) Truckload carrier Celadon Group Inc. (NYSE:CGI) said its unit is raising freight volume and freight lane density with a deal to buy selected operating equipment assets from USA Dry Van Logistics LLC for an undisclosed sum.
Celadon Trucking Services Inc. said its approach is to increase density in its primary traffic lanes between the U.S. and Mexico and reinforce its driver pool.
USA Dry Van provides cross border shipments of goods between Mexico and the United States, which enables Celadon to fulfill one of its primary goals of increasing its freight volumes and lane density in its primary freight lanes.
As stated with previous acquisitions, the company expects to assimilate many of overlapping customers, as well as a portion of the USA Dry Van driver pool, within its operations efficiently and further improve asset productivity.
"We believe we can enhance the service to many of USA Dry Van's former customers through upgraded equipment, advanced technology, additional assets available for dispatch, and an industry leading safety record," said Paul Will, President and COO of Celadon.
Celadon is engaged in the business of truckload carriers. As a dry van truckload carrier, the company transports full trailer loads of freight from origin to destination without intermediate stops or handling. It operates in two segments: asset-based segment and an asset-light segment.
CGI is trading up 0.38% at $15.87 on Wednesday. The stock has been trading between $8.18 and $17.19 for the past 52 weeks.