YRC Worldwide has entered into a definitive agreement to sell a portion of its YRC Logistics business to Austin Ventures, a private equity investor.
This logistics business will operate as a private company owned by Austin Ventures.
The sale will form the basis for a new company specialising in international freight forwarding, customs brokerage, transportation management, truckload services, and dedicated warehouse and fulfilment services in North America, Latin America, Europe and Asia.
"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," says Bill Zollars, chairman, president and chief executive of YRC Worldwide. "There will be no change in the way a customer’s business is handled, and they will benefit from advancements in the delivery of comprehensive supply chain solutions by both companies. In addition, the incremental liquidity from the transaction will support YRC Worldwide business growth."
YRC Worldwide will retain all of its China-based operations and the partnership with Austin Ventures gives customers of the new logistics company ongoing access to these capabilities.
"We are very pleased to partner with the management team of YRC Logistics. We see opportunities to invest in the company and position it for growth through expanded offerings and the continued expansion of its global network," says David Lack (pictured), partner, Austin Ventures. "This investment builds on Austin Ventures’ commitment to work alongside talented executive teams in leading, high-growth supply chain services companies."
The agreement between YRC Worldwide and Austin Ventures is for an acquisition price of USD37m, and incremental value will be realised by both parties through a ommercial services agreement. The transition to new ownership is expected to be complete within the next 30 to 45 days.
