Celadon Group has entered into an agreement to acquire selected assets of N. Yanke Transfer Limited, expanding the North American motor carrier’s footprint for over-the-road and rail services in Canada.
Yanke operates approximately 300 tractors, including more than 100 team expedited trucks, and generated about $90 million in revenue in 2012. The company comprises both domestic Canadian shipments and international shipments between Canada and the U.S. Additional terms and conditions of the transaction were not disclosed.
With this acquisition, Celadon, No. 35 on JOC’s list of the Top 50 Trucking Companies, will continue to expand its international footprint and service offerings in Canada, with an increased presence in the western provinces, following the acquisition of Hyndman Transport earlier this year, according to the company. Celadon anticipates having more than 800 drivers in its Canadian operations upon conclusion of this transaction. The company also noted that it will maintain a number of Yanke’s terminal locations throughout Canada.
Notably, the acquisition enters Celadon into container rail movements in Canada, which represented about $30 million of Yanke’s 2012 revenue. Paired with Celadon’s existing intermodal revenue in the U.S., the company said it now expects to generate approximately $60 million in annual revenue from rail shipments in North America. Celadon’s intermodal segment generated revenue of $7.5 million in the first quarter of fiscal year 2014, which ended Sept. 30, 2013.
“We’re excited to work with Yanke management and look forward to continuing to provide the quality service that the Yanke core account base has come to expect,” said Paul Will, Celadon’s president and CEO, in a written statement. “Based on previous acquisitions, we believe Celadon can enhance that service through upgraded equipment, advanced technology, additional assets and an industry leading safety record.”
Russel Marcoux, CEO and president of N. Yanke Transfer, also announced that he plans to retire:
“The time has come for me to retire,” Marcoux said. “I am happy to pass the Yanke torch to a company like Celadon that shares our same beliefs, values our work and is committed to growing the company within the Canadian and U.S. markets.”
Celadon’s acquisition of Yanke is part of a larger trend in the trucking industry. Recently, larger carriers have been attempting to acquire and absorb smaller companies in order to secure drivers, equipment and freight revenue. Celadon itself has been aggressively pursuing acquisitions specifically to gain drivers, and completed four purchases in the first quarter of fiscal year 2014, including Houg Special Services, Land Span, TCI Logistics and Hoss Cartage and Distribution.
Other recent deals in trucking: