YRC takes control of Chinese trucker

YRC Worldwide, the trucking and logistics conglomerate based in Overland Park, Kan., said it has completed the first phase acquisition of Chinese motor carrier Shanghai Jiayu Logistics Co. Ltd.

Shanghai Jiayu extends the reach in China of YRC Logistics to serve domestic Chinese companies and multinational shippers. The subsidiary acquired 65 percent of Jiayu for $44.7 million and plans to control the remaining 35 percent in 2010, for an amount based on Jiayu's financial performance not to exceed $39 million.

Earlier deal announcements had the second phase of the acquisition priced not to exceed $32 million. Jiayu appears to have produced strong financial results because YRC's paid more than the original range of $29 million to $43 million.

Since entering into the agreement with Jiayu in December 2007, we have seen strong customer interest, and we believe the comprehensive services have a tremendous appeal to the China market and to our customers based in the U.S.,?YRC Logistics Chief Executive Officer Jim Ritchie said.

Jiayu has more than 30,000 customers, 1,800 employees, 200 locations and more than 3,000 vehicles in its truckload and less-than-truckload fleets.

To read more about YRC and YRC Logistics, see the September issue of American Shipper. 

Source: American Shipper