This morning, Chattanooga-based Covenant Transport Group, Inc. completed a multi-million dollar acquisition of Landair Transport, Inc. and Landair Logistics, Inc.
According to a press release on the purchase, Covenant Transport Group (CTG) “purchased 100% of Landair’s outstanding stock in exchange for approximately $83.0 million in cash. At closing, Landair also had approximately $15.5 million of debt which CTG has refinanced.”
Per the terms of the acquisition, John Tweed will keep his job as Landair’s president. Landair will continue to remain headquartered in Greeneville, Tennessee. Landair customers and employees will notice “little change” following the purchase, according to the news release.
CTG’s Chairman and Chief Executive Officer, David R. Parker, explained, “We pursued Landair because of their proven record of growth and profitability in the dedicated and 3PL markets, their talented management team led by John Tweed, and the quality and integrity of their culture represented by their co-founder, Scott Niswonger. Landair is a perfect fit with our strategy to grow in areas where we can get closer and more heavily integrated with customers. 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. 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 was founded in 1981 and currently operates 430 trucks and 900 trailers.