Celadon Selling $53 Million in Leases, Tractors
INDIANAPOLIS, IN — Trucking company operator Celadon Group has agreed to sell its independent contractor lease portfolio to Element Financial Corporation, an equipment finance company.
The exchange puts $53 million in Celadon’s pocket, which the company expects to use to pay down its bank line.
"This transaction will allow us to reduce the amount of debt on our balance sheet, while at the same time providing us with the ability to expand and develop our fleet through a more asset-light model,” said Paul Will, Celadon president and CEO.
The existing portfolio includes about 600 leases and tractors that are currently in service with independent contractors with Celadon and other partner carriers.
As part of this transaction, Element will provide financing for the renewal and expansion of the transportation assets operated by independent lessees under contract to Celadon.