US – CHINA – 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.”
As there has been no word from YRC we must assume their investment in JHJ International Transport, which covers all of mainland China having offices throughout the country, remains intact. The sale of Jiayu is subject to Chinese regulatory approval and expected to close in the second quarter of 2012. The terms of the deal were not disclosed. James Welch, chief executive officer of YRC Worldwide, commented:
“This is another important step in the continuing process to sharpen our focus on North American less-than-truckload (LTL) shipping. Our emphasis on core LTL services has resulted in significant increases in on-time service and our customers are responding very favourably. This transaction allows us to further simplify our portfolio and streamline our operations as we concentrate on regaining the North American LTL market leader position.”