YRC to Sell Logistics Business to Equity Firm for $37 Million

YRC Worldwide said Friday it has entered into an agreement to sell a portion of its YRC Logistics business to a private equity firm for $37 million.

Transition to new ownership under Austin Ventures is expected to be complete within the next 30 to 45 days, YRC said in a statement.

YRC said the sale will form the basis for a new company specializing in international freight forwarding, customs brokerage, transportation management, truckload services and dedicated warehouse and fulfillment 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,” said YRC Worldwide Chairman and Chief Executive Officer Bill Zollars.

“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,” he said in a statement.

YRC will retain its China-based operations and it said the new partnership will give customers of the new logistics company ongoing access to that market.

YRC said its current logistics management team will remain in place and that its “customers will experience the same expertise and accountability.”

“We are very pleased to partner with the management team of YRC Logistics,” said David Lack, an Austin Ventures partner. “We see opportunities to invest in the company and position it for growth through expanded offerings and the continued expansion of its global network.”

YRC Worldwide is ranked No. 4 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.