Monday, August 23, 2010

Trucking Giant Continues Fight For Survival With Logistics Sale

YRC Sell to Texas Investment Group
Shipping News Feature

US- UK – WORLDWIDE - Having peered into the financial abyss last year YRC, the US less than truckload (LTL) haulier have continued their policy of refinancing by selling off their logistics arm. YRC Logistics has been purchased by Texan venture capital firm Austin Ventures, known for start up and company growth capital investment. The deal, mooted in June, was completed last week for $38.7 million and the investors immediately rebranded the group as MIQ Logistics.

Former president and CEO of BAX Global Inc. Joey Carnes was installed as Kansas based MIQ boss and the group will revert to the original MIQ name which was changed by YRC Worldwide in 2007 to emphasize the YRC brand having originally been successful as Meridian IQ logistics. Since that time it has been an uphill struggle for YRC who have had to improve liquidity by strategic redundancies, sale of property and assets, a debt to equity swap in December and a deal to cut salaries negotiated with the unions.

It seems that these drastic measures may have settled the tension surrounding the stock as YRC reportedly took $33.6 million in cash whilst settling YRC Logistics company affairs for payments totalling $11 million. YRC Worldwide is also apparently to retain the potentially lucrative Chinese logistics interests but the bulk of all freight forwarding and customs operations will be transferred back to MIQ.

The deal includes the transfer of the Hampshire based operation which only opened a new 6,500 square foot warehouse in Totton in December citing a big increase in business for the expansion. YRC Logistics has a presence in Asia, North America, South America and Europe and operates from six sites in the UK in London, Birmingham, Manchester, Hemel Hempstead and Glasgow as well as Southampton.