Celadon Group announces sale of lease portfolio assets Celadon Group announced that it has agreed to sell its independent contractor lease portfolio and associated assets to Element Financial. The existing portfolio includes approximately 600 leases and tractors that are currently in service with independent contractors with Celadon and other partner carriers. The purchase price of the transaction is approximately $53M, which the company expects to use the funds to pay down its bank line. As part of this transaction, the company has also entered into a Program Agreement with Element under which Element will provide financing for the renewal and expansion of the transportation assets operated by independent lessees under contract to Celadon.
Celadon Group upgraded to Buy from Hold at BB&T BB&T upgraded Celadon Group to Buy with a $37 price target and raised estimates above consensus based on improving core operations, tight capacity, pricing exceeding cost inflation. Additionally, the company is developing an Asset-light and Quality Equipment divisions that could potentially be worth $100M in 18 to 24 months.