Celadon Launches Share Offering
Celadon Group Inc. announced that 3.5 million newly issued shares are being sold, a move that could raise about $80 million.
The step would increase the number of shares outstanding by 14% from the 24.15 million diluted shares listed in its third-quarter financial report. The potential amount to be raised is based on the May 29 stock price of about $23 per share.
The plan was disclosed in Securities and Exchange Commission filings that said the company “expects to use the net proceeds from the offering to reduce the outstanding borrowing under its revolving line of credit and for general corporate purposes.”
Celadon, which ranks No. 44 on the Transport Topics Top 100 list of U.S. and Canadian for-hire carriers, has made a series of acquisitions in recent years. Most recently, Indianapolis-based Celadon purchased four companies during the first three quarters of its fiscal year that ends June 30 as part of an acquisition trend.
Those companies, the largest of which is A&S Services Group, were purchased for $120.1 million. Annual revenue of the acquired carriers, which included Furniture Row Express, Taylor Express and Bee Line, totaled more than $187 million.
Raymond James & Associates is offering the shares. The investment company has the option to buy an additional 525,000 shares and sell them to the public.
