Celadon Group has completed an $8.3-million deal to buy the truckload business of Warrior Services Inc., which operates under the name Warrior Xpress. This acquisition is the latest in a string of purchases by Celadon during the past few years, including Digby Truck Lines, CX Roberson and Highway Express.
“In those acquisitions, as in this one, our goals are to continue to broaden our customer base with quality customers, add density in our primary traffic lanes, and gain experienced drivers,” said Stephen Russell, Celadon’s chairman & CEO.
“At Celadon, our driver turnover has been significantly better than the industry average over the past few years, and we plan to work hard to retain the Warrior drivers,” Russell continued. “In the short-term, the additional Warrior drivers will retain their units until seated with newer equipment. We believe this strategy will allow us to focus on enhancing our freight mix, assist with driver retention and minimize the risk of unseated tractors following the acquisition. We expect the acquired operations to be accretive beginning in the June 2007 quarter.”
Celadon also continues to generate plenty of cash to fund its expansion efforts. In the second fiscal quarter of 2007, net income increased 27.1% to $6.1 million on 2.2% higher revenues of $122.9 million compared to the same period in fiscal 2006. For the first half of fiscal 2007, Celadon said net income increased 38.9% to $13.2 million on 5.2% higher revenues of $250.6 million compared to the first half of fiscal 2006.