YRC Logistics buying Chinese LTL firm Jiayu
Overland Park, Kan.-based YRC Logistics, the new name for Meridian IQ and a wholly owned subsidiary of YRC Worldwide Inc., has reached agreement to acquire Chinese less-than-truckload company Shanghai Jiayu Logistics Co. Ltd.
Jiayu has more than 30,000 customers, 1,800 employees and a network of some 3,000 vehicles, according to YRC Logistics’ release.
Under terms of the takeover agreement, which is still pending Chinese regulatory approvals, YRC Logistics will acquire 65 percent of the stock of Jiayu for from $29.5 million to $43 million, based upon Jiayu’s final 2007 financial performance.
YRC Logistics expects to purchase the remaining 35 percent in 2010 for an amount not to exceed $32 million, as determined by Jiayu’s 2008-2009 financial performance. All 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, YRC Worldwide’s chairman, president and chief executive officer. “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.”
Jim Ritchie, president of YRC Logistics, said: “Jiayu has outstanding technology, comprehensive network coverage throughout China and a solid management team who will stay with the company.”
Both parties hope to complete the transaction in the second quarter of 2008.