Acquisition Policy Reversed as Times Get Tough
March 11, 2012: Following our story last month concerning the rebranding of YRC Worldwide, the trucking and logistics group, which incorporates subsidiary YRC Freight, has, as predicted, continued its disposal of assets with the sale of the groups interest in Shanghai Jiayu Logistics Co., Ltd. to its 35-percent joint venture partner. YRC bought its 65% stake in the company in 2008 after a period stretching back several years when it had grown enormously through an acquisition policy started when the Yellow Corporation bought out the Roadway Corporation in a billion dollar deal to form the Yellow Roadway Corporation.
YRC paid $47.7 million when they purchased their share of Shanghai Jiayu Logistics, principally a less than truckload road haulage outfit, but never took up the option they had to buy the balance of shares in 2010 at the $14 million agreed. The deal was described at the time by then Chairman, President and CEO of YRC Worldwide, Bill Zollars, as, “The next step in building a comprehensive portfolio of logistics services for our customers in China.”Click here to read more.