Celadon Group said it has agreed to sell about 600 leases and tractors to Element Financial Corp. for about $53 million to pay down debt.
“This transaction will allow us to reduce the amount of debt on our balance sheet, while at the same time providing us with the ability to expand and develop our fleet through a more asset-light model,” Celadon CEO Paul Will said in a statement.
As part of the transaction, Element will provide financing for the renewal and expansion of the transportation assets operated by independent lessees under contract to Celadon.
The company said the transaction will be reported in the company’s quarterly results that will be released after the close of market April 29.
Celadon Group ranks No. 44 in the Transport Topics Top 100 list of for-hire carriers in the United States and Canada.