Celadon Group announces agreement to sell substantially all of U.S. freight forwarding business.NEW YORK--(BUSINESS WIRE)--Dec. 20, 1995--Celadon Group Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CLDN CLDN Calling Line Directory Number CLDN Claudin (gene family) ) today announced that it has signed a definitive agreement with Circle International Inc. the main operating subsidiary An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. of the Harper Group Inc. (NASDAQ: HARG HARG Household Analysis Review Group (UK) ), whereby Circle International will purchase certain assets and liabilities of Celadon's U.S. freight forwarding business, operating under the name of Celadon/Jacky Maeder Co. Celadon/Jacky Maeder Co. is owned 70 percent by Celadon celadon Chinese, Korean, Siamese, and Japanese stoneware decorated with glazes the colour range of which includes greens of various shades, olive, blue, and gray. The colours are the result of a wash of slip (liquefied clay) containing a high proportion of iron that is Group Inc. and 30 percent by Switzerland-based Jacky Maeder Ltd. Pursuant to the terms of the agreement, the total purchase price will be paid in cash and will equal the net revenue of the acquired business in the twelve-month period following the closing of the transaction. Estimated annual net revenue for the business to be acquired is approximately $21 million, based on results for the quarter ended Sept. 30, 1995. The transaction does not affect Celadon's distribution and forwarding company in the United Kingdom or the business of Jacky Maeder outside the U.S. Completion of the sale, currently expected to be on or by Feb. 1, 1996, is subject to approval under the Hart-Scott-Rodino Act Hart-Scott-Rodino Act Often used in risk arbitrage. Antitrust act administered by U.S. Department of Justice and the FTC that requires an investor to file a form with the government before he acquires an economic interest in the lesser amount of $15 million or 15% of the . "The proposed sale represents an excellent opportunity for the U.S. freight forwarding business to achieve its true potential under the umbrella of a leader in that market segment," commented Len Bennett, president of Celadon. "The transaction also permits management to focus its full attention and resources on our core businesses: trucking and logistics. Each of these businesses has demonstrated very positive growth potential, particularly with regard to truckload truck·load n. The quantity that a truck can hold. truckload n → camión m lleno movements in the U.S. and Mexico under our contract with Chrysler and distribution services provided in Brazil and Argentina to Wal-Mart Stores through our Celsur subsidiary." Celadon/Jacky Maeder Co. was formed on Oct. 31, 1994 through the merger of Celadon's U.S. freight forwarding operations with the U.S. freight forwarding operations of Jacky Maeder Ltd. Under that merger agreement, the freight forwarding business was operated as a partnership, with Celadon retaining a 70 percent equity interest and Jacky Maeder Ltd. holding the remaining 30 percent. The acquired freight forwarding business will become part of Harper Group's primary operating subsidiary, Circle International Inc. Circle International is a global provider of integrated forwarding, customs brokerage, warehousing and distribution, as well as procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. and trading services with an information network linking customers, carriers and its own operations. The company, with headquarters in San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden , is a network of over 300 offices and agents in 86 countries. Celadon Group Inc. is an international transportation company offering long-haul, full truckload transportation, logistics and distribution services. CONTACT: Celadon Group Inc. Len Bennett, 317/782-8470 or Brian L. Reach, 800/839-4227 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion