YRC Worldwide Inc. has entered into a definitive agreement to acquire Shanghai Jiayu Logistics Co., Ltd., a provider of less-than-truckload transportation services in China. The target company has more than 30,000 customers, 1,800 employees and a network of more than 3,000 vehicles. Initially, YRC will hold 65 percent of Jiayu's stock, valued at between $29.5m and $43m, based on Jiayu's final 2007 financial performance and currency-exchange rates. YRC said it expects to acquire the remaining 35-percent interest in 2010, for an amount not to exceed $32m. Payments will be made in Chinese yuan. Completion of the deal is subject to Chinese regulatory approvals, the restructuring of Jiayu's operations and other conditions, YRC said. Closing is scheduled for the second quarter of 2008. YRC Logistics is a subsidiary of YRC Worldwide, Inc., which also operates Yellow Transportation, Roadway, Reimer Express and other transport companies. Services include international shipping, distribution and warehouse management, supply-chain planning and visibility, import and export compliance, and supply-chain design. It operates in more than 76 countries. YRC Logistics was formerly known as Meridian IQ.
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