Celadon Group Completes Disposition of Flatbed Division

INDIANAPOLIS, Sept. 18, 2017 /PRNewswire/ -- Celadon Group, Inc. ("Celadon" or the "Company") (NYSE: CGI) today announced that it has completed the disposition of substantially all assets associated with its flatbed trucking division (the "Flatbed Division") to a subsidiary of PS Logistics, LLC.  Financial terms were not disclosed.

The Flatbed Division assets included in the transaction consisted primarily of leased and owned trailers, which were sold in exchange for an assumption or satisfaction of the lease obligations and cash, respectively. Celadon is also entitled to certain post-closing goodwill payments.  In addition, the purchaser will enter into contracts covering up to 100 independent contractor flatbed drivers, hire certain flatbed company drivers and operations employees, and assume certain customer contracts associated with the Flatbed Division.

Paul Svindland, Celadon's Chief Executive Officer, commented: "Under the strategic plan adopted over the past 30 days, our goal is to concentrate our resources on core business lines where we add value to customers and have the opportunity to generate acceptable returns over time.  In our portfolio of companies, several are high performers with steady business levels and cash flow, and include dedicated, warehousing and logistics, regional, and other value-added services.  Our historical Celadon irregular route NAFTA-focused truckload business ("CTSI") has had a difficult year from a profitability perspective but offers a strong niche with longstanding customer relationships.  Our new management team determined that we had neither the expertise nor the critical mass to compete in the flatbed sector.  Accordingly, we were pleased to offer our people and customers a good home with one of the largest and most successful flatbed operators in the U.S. The remaining CTSI business is undergoing an intense improvement phase with multiple initiatives taking hold into a rapidly improving freight marketplace.  We expect to continue to execute on our strategic plan as we seek to refinance our capital structure."

"We are proud to welcome Celadon's Flatbed Division to the PS Logistics family," said Scott Smith, Chief Executive Officer of PS Logistics. "We look forward to working with their great flatbed drivers and operations group."

About Celadon
Celadon Group, Inc. (www.celadongroup.com), through its subsidiaries, provides long-haul, regional, local, dedicated, intermodal, temperature-protect, and expedited freight service across the United States, Canada, and Mexico.  The company also owns Celadon Logistics Services, which provides freight brokerage services, freight management, as well as supply chain management solutions, including warehousing and distribution.

About PS Logistics
Founded in 2004, PS Logistics is one of the largest and fastest growing flatbed transportation solution providers in the United States.  PS Logistics provides full-service transportation services, including asset-based transportation, brokerage, 3PL and supply chain services. This hybrid model delivers optimal flexibility to address customer's flatbed transportation needs in various industries throughout the United States.

This press release contains certain statements that may be considered 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, and such statements are subject to the safe harbor created by those sections and the Private Securities Litigation Reform Act of 1995, as amended. Such statements may be identified by their use of terms or phrases, including "expects," "expected," "will," "would be," "intends," "goal," "believes," and similar terms and phrases. 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.  In this press release, statements relating to post-closing goodwill payments, the purchaser's post-closing actions with respect to drivers and assumption of contracts, our strategic plan, achievement of our improvement initiatives, the freight marketplace, and the refinancing of our capital structure, among others, are forward-looking statements.   Actual results may differ from those set forth in the forward-looking statements.  Readers should review and consider factors that could impact results as provided in various disclosures by the Company in its press releases, stockholder reports, and filings with the Securities and Exchange Commission.

For more information: 
Joe Weigel 
Director of Communications 
(317) 972-7006 Direct
jweigel@celadongroup.com

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SOURCE Celadon Group, Inc.