October 10, 2006 10:45 AM, EDT

Celadon Purchases Digby Truck Lines, Announces 1Q Earnings Guidance

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eladon Group on Monday purchased truckload carrier Digby Truck Lines for $21 million.

The deal includes about 270 of Digby’s tractors and 590 trailers, Celadon said in a statement.

“We plan to retain approximately 90 of the newest tractors and approximately 180 of the newest trailers from the acquisition and dispose of the balance,” said Steve Russell, chief executive officer of Celadon. “In the short-term, the additional Digby drivers will retain their units until seated with newer equipment.”

As part of the acquisition, Celadon said it offered employment to about 150 Digby drivers.

Digby generated about $48 million in gross revenue in 2005.

Also on Tuesday, Celadon it expects to earn between 28 and 30 cents in its first fiscal quarter ended Sept. 30.

The guidance for the September 2006 quarter compares with earnings of 20 cents a share in 2005, Celadon said in a statement.

Celadon Group is ranked No. 58 on the Transport Topics 100 list of the largest for-hire carriers in the United States and Canada.