Through The Fly's Eyes: YRC Worldwide
from Kevin Shult of Theflyonthewall.com
YRC Worldwide Kicks Open China’s Door
It’s been a month since YRC Worldwide’s (YRCW) annual shareholder meeting, when CEO Bill Zollars said that he would look to the East for future expansion. Look no further:
Today, the company announced they have entered a preliminary deal to acquire Shanghai Jiayu Logistics Limited, one of the largest providers of less-than-truckload ground transportation services in China.
The push into China more than doubles the size of YRC Worldwide in China, from 1,400 employees to over 3,000. While details of the transaction were not provided, Zollers said earlier this year that acquisitions in China would cost up to $100 million. With over 30,000 customers, 1,600 employees, 300 tractors and a network of over 3,000 vehicles in Shanghai’s possession, YRC Worldwide found a steal.
When comparing the assets to MeridianIQ, the Company’s logistics segment – now called YRC Logistics - it’s monumental. YRC Logistics has 18,000 transactional and 350 contractual customers around the globe and accounted for 6% of YRC Worldwide’s total operating revenue in 2006 ($162.5B). Today’s acquisition more than doubles the assets and overall customers of the Logistics segment alone, with the bulk now in China. Zollers said he expects to see significant revenues from China to hit the bottom line in 2008.
The transportation giant already has a jointly-owned air freight importer and a jointly-owned logistics’ company in the region, but the acquisitions are far from over. Zollars told analysts back in March to expect two acquisitions this year, a ground hauler and a logistics company.
One down, one to go.