INDIANAPOLIS, Jan. 26, 2015 /PRNewswire/ -- Celadon Group, Inc. (NYSE: CGI) "Celadon", one of North America's premier transportation and logistics companies, today announced the acquisition of 100% of the stock of Taylor Express, Inc. ("Taylor"). Taylor is a leading regional dry van and dry bulk for-hire and dedicated truckload carrier based in Hope Mills, NC. Taylor's fleet operations principally serve the tire and retail industry primarily in the South and Southeast regions.
Celadon anticipates Doug Taylor, the founder and previous owner; Dianne Taylor, his wife; Robbie Taylor, his son; and the present management team will remain in place. It will continue to operate independently under the Taylor Express name, with the current Taylor personnel. Taylor drivers and administrative employees, as well as customers, should notice little change moving forward.
Celadon paid approximately $43 million at closing for the purchase of the business. Celadon also paid an additional approximately $6 million attributable to a Section 338(h) (10) tax election related to the purchase that is expected to generate net present value of expected future cash tax savings in excess of this amount. The balance sheet was delivered on a cash free and debt free basis and includes approximately $27 million of tangible net assets. Of the closing amount, approximately $2.2 million was held in escrow to secure indemnification obligations.
"I'm excited to bring the comprehensive, state-of-the-art resources of Celadon to our customer base," commented Doug Taylor, CEO of Taylor Express, Inc. "This should help us continue to service our current customers and ultimately provide the necessary resources to offer more capacity to our customers and grow our revenue."
"Taylor Express will be a tremendous addition to our strategic platform," commented Paul Will, Celadon President and CEO. "Doug Taylor has brought together an outstanding management team, focused on providing excellent service to customers. Our plans are to keep his executive team and administrative organization in place, while providing the needed resources to grow operations."
Taylor operations started in 1987 when Doug Taylor began relationships with customers that still exist today. Presently, Taylor is an asset-based carrier that operates approximately 190 trucks, 840 trailers and generates approximately $38 million in total annual revenue. Taylor also has one of the most experienced and qualified fleets of driving professionals in the region with low driver turnover.
"With the addition of Taylor Express, Celadon will expand its leadership position in the transportation and logistics industry," commented Will. "We're happy to have Taylor as part of the Celadon team and expect to build on the synergies that this acquisition will bring to the customers we serve."
Celadon Group, Inc. (www.celadongroup.com), through its subsidiaries, provides long-haul, regional, local, dedicated, intermodal, temperature-controlled, flatbed and expedited freight service across the United States, Canada and Mexico. Celadon also owns Celadon Logistics Services, which provides freight brokerage services, freight management, as well as supply chain management solutions, including warehousing and distribution.
Taylor Express, Inc. (www.taylorexpressinc.com) is a premier provider of regional transportation services focused on high quality, best in class customer service in the South and Southeast region, with expertise in the transport of both dry van and bulk truckload services.
This press release contains 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. Such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally may be identified by words such as "anticipates," "believes," "estimates," "plans," "projects," "expects," "hopes," "intends," "will," "should," "could," "may," and terms and phrases of similar substance. In this press release, forward-looking statements cover matters such as future plans for, and the impact on, management, drivers, associates, and customers, the impact of the acquisition on Celadon, and the ability to realize synergies and expansion plans. 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. Accordingly, actual results may differ from those set forth in the forward-looking statements. Readers should review and consider the factors that may affect future results and other disclosures by Celadon in its press releases, stockholder reports, Annual Report on Form 10-K, and other filings with the Securities and Exchange Commission. Celadon disclaims any obligation to update or revise any forward-looking statements to reflect actual results or changes in the factors affecting the forward-looking information.
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SOURCE Celadon Group, Inc.