Covenant Transportation Group has completed the acquisition of Landair Holdings, which includes Landair Transport and Landair Logistics.
Landair is a dedicated and for-hire truckload carrier, as well as a supplier of 3PL transportation, warehousing, and logistics inventory management services. Under the terms of the agreement, CTG bought all of Landair’s outstanding stock for around 83 million in cash.
“We believe the backing of CTG will provide additional resources to expand Landair’s dedicated truckload operations to best meet the needs of its strong customer base, as well as improve profit margins through identified cost synergies,” said David Parker, CTG chairman and chief executive officer. “Additionally, Landair’s existing managed freight business is expected to immediately improve CTG’s collective managed freight service offering, adding experience, human capital and important additional systems capabilities.”
Landair carried with it, $15.5 million in debt when CTG purchased it, which the company has refinanced. John Tweed will continue to lead the Landair business as its president and the company is expected to maintain its Greenville, Tenn., headquarters.
“Continued growth at the pace we are experiencing requires access to the resources and support of a strong partner like CTG,” said Tweed. “The alignment in company cultures should enable a smooth integration of the two well-respected organizations.”