2008-08-19 08:00:00
Acquisition extends YRC Worldwide portfolio of services in China with
reliable ground transportation
SHANGHAI, China and OVERLAND PARK, Kan., Aug. 19 /EMWNews/
-- YRC Worldwide (Nasdaq: YRCW) today announced that YRC Logistics
successfully closed its acquisition of Shanghai Jiayu Logistics Co., Ltd.,
one of the largest providers of truckload and less-than-truckload ground
transportation services in China. With over 30,000 customers, 1,800
employees, 200 locations and a network of more than 3,000 vehicles, Jiayu
provides an ideal platform for YRC Worldwide to support the needs of both
local Chinese customers and large multinational companies with
transportation requirements in China.
"By virtue of Jiayu's mature network and well developed operational
resources, we can help our customers to improve transportation reliability,
compliance, data integrity and visibility for their shipments in China,"
said Bill Zollars, Chairman, President and CEO of YRC Worldwide. "Shanghai
Jiayu Logistics represents a key link in building an end-to-end supply
chain capability."
YRC Logistics acquired 65 percent of the stock of Jiayu for US $44.7
million. YRC Logistics expects to purchase the remaining 35 percent
interest in 2010, for an amount not to exceed US $39 million, as determined
by the level of Jiayu's 2008-09 financial performance.
Jim Ritchie, President and CEO of YRC Logistics added, "Since entering
into the agreement with Jiayu in December 2007, we have seen strong
customer interest, and we believe the comprehensive services have a
tremendous appeal to the China market and to our customers based in the
U.S."
Forward Looking Statements:
This news release (and oral statements made regarding the subjects of
this release) contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. The word "expects" and
similar expressions are intended to identify forward-looking statements.
YRC Logistics' expectations regarding the purchase of the additional 35
percent of Jiayu in 2010 is only its expectations regarding this matter.
YRC Logistics is required to purchase this 35 percent if Jiayu meets
certain financial targets. If Jiayu does not meet these targets, YRC
Logistics has a call option that it may or may not exercise, to purchase
the remaining 35 percent at a lesser price.
About YRC Logistics
YRC Logistics, a wholly-owned subsidiary of YRC Worldwide, is a global
logistics company. Based in Overland Park, Kansas, and with offices in
North America, Asia, Europe and South America, YRC Logistics enables
companies to improve their transportation network and overall supply chain
efficiency by offering flexible logistics solutions supported by Web-hosted
technology and global logistics management capabilities.
About YRC Worldwide
YRC Worldwide Inc., a FORTUNE 500 company and one of the largest
transportation service providers in the world, is the holding company for a
portfolio of successful brands including Yellow Transportation, Roadway,
Reimer Express, YRC Logistics, New Penn, USF Holland, USF Reddaway, and USF
Glen Moore. The enterprise provides global transportation services,
transportation management solutions and logistics management. The portfolio
of brands represents a comprehensive array of services for the shipment of
industrial, commercial and retail goods domestically and internationally.
Headquartered in Overland Park, Kan., YRC Worldwide employs approximately
60,000 people.
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