OVERLAND PARK, Kan. — YRC Worldwide Inc. on Friday said it will sell a portion of its YRC Logistics business to Austin Ventures, a strategic private equity investor. This logistics business will operate as a private company owned by Austin Ventures.
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, according to the YRC news release.
“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 Bill Zollars, chairman, president and CEO, YRC Worldwide. “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.”
YRC Worldwide will retain all of its China-based operations and the strategic partnership with Austin Ventures gives customers of the new logistics company ongoing access to these capabilities, the company said.
“We are very pleased to partner with the management team of YRC Logistics. We see opportunities to invest in the company and position it for growth through expanded offerings and the continued expansion of its global network,” said David Lack, partner, Austin Ventures. “This investment builds on Austin Ventures’ commitment to work alongside talented executive teams in leading, high-growth supply chain services companies.”
The agreement between YRC Worldwide and Austin Ventures is for an acquisition price of $37 million, and incremental value will be realized by both parties through a comprehensive commercial services agreement. The transition to new ownership is expected to be complete within the next 30-45 days.
“The current YRC Logistics management team remains in place and customers will experience the same expertise and accountability,” adds John Carr, president-YRC Logistics. “The substantial equity infusion from Austin Ventures positions us to pursue new business development as well as growth through acquisition.”
With an investment focus on business services and supply chain, financial services, media and information services, software and Internet, and Texas special situations, Austin Ventures invests at all stages of company development, from $100,000 in “planned experiments” in early stage ideas to $100+ million investments in expansion rounds, minority recapitalizations, and buyouts of lower middle market growth companies. AV has been an active investor in the transportation and logistics sector — including current investments in port-based warehousing and distribution, truck and intermodal brokerage, and returns management solutions — and continues to actively expand its presence in the space.
YRC Worldwide Inc., a Fortune 500 company headquartered in Overland Park, Kan., is one of the largest transportation service providers in the world and the holding company for a portfolio of brands including YRC, YRC Reimer, YRC Glen Moore, New Penn, Holland and Reddaway.
Kevin Jones of The Trucker staff can be reached for comment at firstname.lastname@example.org.
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