Celadon Group, Inc. announced it has entered into an agreement to sell its approximately 49.9 percent equity interest in 19th Capital Group, LLC to an affiliate of Element Fleet Management for nominal value. The sale is expected to close during the quarter ended December 31 and is subject to customary closing conditions.

19th Capital provides equipment financing to owner-operator drivers and private fleets. Celadon acquired its interest in 19th Capital in December 2016 as part of establishing a joint venture with Element. Celadon initially recorded the value of its investment as $100 million.  On April 2, 2018, the company announced that it expected to reduce the carrying value of its investment in 19th Capital and that the restated carrying value of such investment could be as low as zero.

The sale price for Celadon's interest in 19th Capital under the sale agreement is materially consistent with this expectation and the sale is not expected to materially impact Celadon's assets, results of operations, or cash flows. Due to its previously disclosed and ongoing audit and restatement processes, the company said it is not in a position to provide a more detailed assessment of the sale's impact at this time.

"We had identified our interest in 19th Capital as a candidate for disposition as part of our strategic plan to shed non-core assets and refocus on our core trucking operations. We determined that it was the right time to exit our investment and turn over full management to Element," said Paul Svindland, Celadon's Chief Executive Officer.