Photo: Evan Lockridge

Photo: Evan Lockridge

Trucking company operator Celadon Group has agreed to sell its independent contractor lease portfolio and associated assets to Element Financial Corporation, an equipment finance company.

The purchase price of the transaction is approximately $53 million, which the company expects to use the funds to pay down its bank line.

The existing portfolio includes approximately 600 leases and tractors that are currently in service with independent contractors with Celadon and other partner carriers. 

As part of this transaction, the company has also entered into a program agreement with Element under which Element will provide financing for the renewal and expansion of the transportation assets operated by independent lessees under contract to Celadon.

"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,” said Paul Will, Celadon president and CEO.