Yellow to Acquire 50% Stake in Chinese Transportation Company

June 17, 2005 3:00 AM, EDT

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ellow Roadway said Friday it would spend $45 million to obtain a 50% stake in a Chinese freight company called JHJ International Transportation.

The company said in a statement that JHJ, the freight forwarding subsidiary of Jin Jiang Investment, is 65% owned by Jin Jiang, with the remaining 35% held by three other companies. But after this deal is completed, Yellow and Jin Jiang would each own 50% of JHJ, the release said.

JHJ is based in Shanghai and is the second largest air freight forwarder in China, Yellow said. JHJ has 22 locations, employs over 1,000 people and reported 2004 revenue of $330 million.

"Finding the right partner in China was critical to our international expansion - and we have found that partner in Jin Jiang," Bill Zollars, Yellow's chairman and chief executive officer said. "Our objective is to provide seamless, end-to-end global transportation solutions to our customers. The joint venture with Jin Jiang advances this objective by significantly expanding our scale and capabilities in China."

Yellow said the joint venture is subject to governmental approval in China and is expected to close in the fall.

The company is ranked No. 3 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies.

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