YRC Buying Chinese LTL Firm
Less-than-truckload carrier YRC Worldwide said late Thursday its logistics unit will pay as much as $75 million to buy a Chinese LTL firm.
YRC Logistics will buy Shanghai Jiayu Logistics Co. one of China’s largest LTL companies, with more than 1,800 employees, 30,000 customers and a network of more than 3,000 vehicles.
YRC will buy 65% of the stock of Jiayu for between $29.5 million and $43 million, based on Jiayu’s 2007 financial performance. YRC expects to purchase the remaining 35% interest in 2010 of up to $32 million.
The payments will be made in Chinese yuan.
“China continues to be one of the fastest growing markets for our customers and an important part of YRC Worldwide's overall strategy,” said Bill Zollars, chairman and chief executive officer of YRC Worldwide.
“The acquisition of Jiayu allows us to provide reliable ground transportation and is the next step in building a comprehensive portfolio of logistics services for our customers in China,” he said in a statement.
YRC Worldwide is ranked No. 4 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.
