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October 27, 2014 4:00 PM, EDT

Celadon Acquires A&S Services Group

Celadon Group has acquired A&S Services Group, a regional for-hire and dedicated truckload carrier, for $55 million.

Based in New Freedom, Pennsylvania, A&S provides dry van transportation services in the Mid-Atlantic and Northeast. A&S also is a major supplier of logistics, warehousing and distribution services in those regions.

Celadon said it assumed $31.8 million in operating leases that it will capitalize and record on its balance sheet for approximately $74.9 million of tangible net assets. Of the $55 million closing amount, $2.75 million was held in escrow to secure indemnification obligations.

"I look forward to bringing the vast, leading-edge resources of Celadon to our customer base," A&S President Ken Buck said. "This should help further accelerate our aggressive growth plans in the Mid-Atlantic and the Northeast."

"The various companies of A&S will be a terrific complement to our strategic footprint," Celadon President and CEO Paul Will said. "Ken Buck has assembled an excellent operating team, focused on providing a high service level to customers. We plan to keep his executive team and administrative organization in place while providing the necessary resources to expand operations."

Celadon said A&S is an asset-based carrier with about 500 trucks and 1,500 trailers and has approximately 500,000 square feet of warehouse space. Celadon said A&S will continue to operate independently under the A&S Kinard name.

In September, Celadon’s trucking unit acquired about 100 tractors and 200 refrigerated trailers from Furniture Row Express. The company has made more than a dozen acquisitions over the past several years.

Indianapolis-based Celadon ranks No. 44 on Transport Topics Top 100 list of for-hire carriers in the United States and Canada.