YRC Worldwide to buy Chinese LTL company

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YRC Worldwide Inc. announced Thursday, Dec. 20, that it will acquire Shanghai Jiayu Logistics Co. Ltd., a Chinese less-than-truckload shipper, in a two-stage cash deal. Jiayu is one of the largest LTL shippers in China, with more than 30,000 customers, about 1,800 employees and more than 3,000 vehicles, YRC says.

YRC says it will pay $29.5 million to $43 million for a 65 percent stake in Jiayu, with the purchase price determined by the Chinese company’s performance this year. YRC then will pay up to $32 million for the remaining stake in 2010; that price will be based on the Shanghai-based company’s performance over the next two years. YRC will pay for the deal in Chinese yuan. The deal is expected to close in the second quarter of 2008.

“China continues to be one of the fastest-growing markets for our customers and an important part of YRC Worldwide’s overall strategy,” says Bill Zollars, chairman, president and chief executive officer of Overland Park, Kan.-based YRC.