Transportation provider YRC Worldwide Inc. has announced a definitive agreement to sell a portion of its YRC Logistics business to Austin Ventures, a strategic private equity investor.
The 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 warehouse and fulfillment services in North America, Latin America, Europe and Asia.
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.
"We see opportunities to invest in [YRC Logistics] and position it for growth through expanded offerings and the continued expansion of its global network," says David Lack, partner, Austin Ventures.
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.