YRC Worldwide Inc. said today it had agreed to sell most of its logistics unit, YRC Logistics, to Austin Ventures, a Texas-based private equity firm, for $37 million.
Under the agreement, YRC will keep the logistics unit's Chinese and U.S. freight forwarding operations. The operations to be sold will form the basis of a private company owned by Austin Ventures, YRC said. The new company will handle international forwarding, customs brokerage, transportation management, truckload services, and warehouse and fulfillment operations in North America, Latin America, Europe, and Asia.
All of YRC Logistics' management will remain in place, and the unit's customers should see no change in the way business is conducted, YRC said.
The sale allows YRC "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 William D. Zollars, YRC Worldwide's chairman, president, and CEO.
"The substantial equity infusion from Austin Ventures positions us to pursue new business development as well as growth through acquisition," said John Carr, president of YRC Logistics.
The transition to new ownership is expected to be complete within the next 30 to 45 days, YRC said.