YRC Worldwide announced Tuesday, Aug. 19, that YRC Logistics successfully closed its acquisition of Shanghai Jiayu Logistics Co. Ltd., one of the largest providers of truckload and less-than-truckload ground transportation services in China.
YRC Worldwide says Jiayu — with more than 30,000 customers, 1,800 employees, 200 locations and a network of more than 3,000 vehicles — provides an ideal platform for it to support the needs of both local Chinese customers and large multinational companies with transportation requirements in China.
“By virtue of Jiayu’s mature network and well-developed operational resources, we can help our customers to improve transportation reliability, compliance, data integrity and visibility for their shipments in China,” says Bill Zollars, chairman, president and chief executive officer of Overland Park, Kan.-based YRC Worldwide. “Shanghai Jiayu Logistics represents a key link in building an end-to-end supply chain capability.”
YRC Logistics, which acquired 65 percent of the stock of Jiayu for U.S. $44.7 million, expects to purchase the remaining 35 percent interest in 2010, for an amount not to exceed U.S. $39 million, as determined by the level of Jiayu’s 2008-09 financial performance.
“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.,” says Jim Ritchie, president and CEO of YRC Logistics.