YRC sells part of logistics business

YRC Worldwide, as part of an effort to focus on its core trucking operations, said it agreed to sell a portion of its logistics business to private-equity firm Austin Ventures for US$37 million, Dow Jones reported.

Shares were up 17 percent to 21 cents in recent trading. The stock has fallen 75 percent this year following a recapitalisation at the start of 2010.

The company said it was planning for further belt-tightening and possible divestitures.

YRC, the largest independent less-than-truckload carrier in the US, said it will retain all of its China-based operations. Austin Ventures, which has about $4 billion in assets under management, said the current management team will continue to run the logistics business after the purchase.

"This transaction enables YRC Worldwide to focus on our core transportation capabilities while continuing to offer full global logistics solutions for our customers through a strong business relationship with the new company," said YRC Chairman and chief executive Bill Zollars.
(Source:www.cargonewsasia.com)