Celadon Group Inc. agreed to sell its approximately 49.9% equity interest in 19th Capital Group LLC, a provider of equipment financing to owner-operator drivers and private fleets, to an affiliate of Element Fleet Management Corp. for nominal value.
Celadon, a transportation services provider, acquired its interest in 19th Capital in December 2016 as part of a joint venture with Element. Celadon initially recorded the value of its investment as $100 million. The company subsequently said it will write down the carrying value of its investment in 19th Capital to as low as zero. The sale price for Celadon's interest in 19th Capital under the sale agreement reflects this expectation and the sale is not expected to materially impact Celadon's assets, results of operations, or cash flows.
The sale is is subject to closing conditions and is expected to close during the fourth quarter.