By: Zacks Equity Research
source:zacks.com
Trucking company, YRC Worldwide Inc. announced to sell a portion of its logistics business to private equity firm Austin Ventures for $37 million, to boost its cash position.
The newly formed company will focus on international freight forwarding, customs brokerage and transportation management in North America, Latin America, Europe and Asia. However, YRC plans to retain its China based logistics operations.
The acquisition is scheduled to be finalized within the next one and a half month.
Till date, YRC is facing major challenges including sustaining liquidity, dilution of preferred stock, loss of customers and a weak LTL (less than truckload) market. The company is trying to deter total financial collapse in every possible way.
YRC also completed its debt-for-equity exchange at the end of December 2009, which will likely be beneficial for the company.
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