Yellow buys major stake in Chinese LTL giant

OVERLAND PARK, Kan. — YRC Worldwide Inc. will spend as much as $75 million to buy a controlling interest in one of China’s largest LTL carriers.

YRC subsidiary YRC Logistics has signed a definitive agreement to buy Shanghai Jiayu Logistics Co. Ltd., which has more than 30,000 customers, 1,800 employees and more than 3,000 vehicles.

“China continues to be one of the fastest-growing markets for our customers and an important part of YRC Worldwide’s overall strategy,” YRC Worldwide CEO Bill Zollars said in the release. “The acquisition of Jiayu allows us to provide reliable ground transportation and is the next step in building a comprehensive portfolio of logistics services for our customers in China.”

YRC, which became the world’s largest trucking company when Yellow Corp. meged with Roadway, will buy 65 percent of Jiayu stock for $29.5 million to $43 million.

YRC Logistics plans to buy the remaining 35 percent interest in 2010 for as much as $32 million, based on Jiayu’s financial performance in the intervening years.

The deal is expected to close in the second quarter of 2008.