Celadon buys Continental Express for $24 million

INDIANAPOLIS - Celadon Group Inc. said Thursday that one of its units bought much of trucking firm Continental Express Inc. for $24 million.

The Little Rock, Ark.-based Continental Express had 2007 revenue of $92 million, Celadon said.

Celadon is getting the truckload, intermodal, and brokerage business of Continental Express along with 400 tractors and 1,100 trailers.

Celadon said it expects to integrate the Continental Express operation soon, and that it should begin adding to profits beginning in the March 2009 quarter.

"Based on our evaluation of the business, we believe Continental has quality customers and drivers, but suffered from a cost structure that plagues many mid-sized carriers," Celadon Chairman and Chief Executive Steve Russell said in a prepared statement.

Celadon shares fell 25 cents, or 3.3 percent, to close at $7.24 on Thursday.

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