(By Balaseshan) Truckload carrier Celadon Group Inc. (NYSE: CGI) said its unit has agreed to buy Rock Leasing Inc. based in Warren, Indiana, and Kelly Logistics Inc. based in Wadley, Alabama for an undisclosed sum.
Celadon Trucking Services Inc. said it, with these acquisitions, will further expand its breadth of service, now to include temperature control service, as well as an increased number of customer spotting locations and increased multi-tenant warehouse space, in addition to its dry van, intermodal, regional and local coverage.
In addition to its dry van business, Rock Leasing is a provider of temperature controlled shipments in and out of the Midwest, which enables Celadon to enter this service category well within many of its primary freight lanes.
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Kelly Logistics provides dedicated equipment spotting and shuttle services to customers at multiple locations in the Southeast.
Celadon will be maintaining the Rock Leasing facility in Warren, Indiana, which includes two warehouses on about 20 acres and about 150,000 square feet of warehouse space.
In addition, both Robert Seabolt from Rock Leasing and Guy Kelly from Kelly Logistics will remain with Celadon for a period of time to help ensure an orderly transition.
"We believe that both Rock Leasing and Kelly Logistics offer solid potential to supplement our existing business and further advance our overall growth plans by accelerating Celadon's entry into the refrigerated van and equipment spotting service areas," said Paul Will, President and CEO, Celadon Trucking.
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CGI is trading up 0.83% at $18.31 on Thursday. The stock has been trading between $11.75 and $18.61 for the past 52 weeks.