First came a preliminary suggestion that it would happen. Then came the final news. YRC Worldwide (formally Yellow Roadway which you may think a more memorable name) will acquire 65% of Shanghai Jiayu Logistics for between US$29.5 million and US$43 million, depending on Jiayu’s final 2007 figures.

The deal will not be totally complete until 2010 when YRC plans to purchase the remaining 35% interest in for around US$32 million.

Shanghai Jiayu Logistics is one of the largest providers of LTL ground transportation services in China, with a network of more than 3,000 vehicles serving more than 30,000 customers.

(For those wondering what LTL stands for it is a shipment that is ‘less than a truckload’. Cargoes from different sources are usually consolidated to save costs.)

YRC Worldwide chairman, president and CEO Bill Zollars, seen here, said, ‘China continues to be one of the fastest growing markets for our customers and an important part of YRC Worldwide’s overall strategy. The acquisition of Jiayu allows us to provide reliable ground transportation and is the next step in building a comprehensive portfolio of logistics services for our customers in China.’

Jiayu’s management will remain with the company.
Source: Eye for Transport