William B. Cassidy | Aug 17, 2010 10:59AM EDT
YRC Worldwide completed the $38.7 million sale of most of YRC Logistics to private equity firm Austin Ventures, which rebranded the unit as MIQ Logistics.
Sealing the deal delivered $33.6 million to YRC Worldwide Aug. 16, with the remaining $5.1 million placed in escrow, the company said.
The $33.6 million bolsters YRC’s finances as the company struggles to return to profitability. It reported a $9.5 million net loss in the second quarter.
YRC Logistics lost $4.5 million last year on $411 million in revenue. For the first six months of 2010, the unit lost $21.4 million on $152.4 million in revenue.
YRC Worldwide reported one-time shutdown and termination costs of $9 million to $11 million associated with the sale, which did not include its China joint ventures.
Austin Ventures, which has more than $3.9 billion under management in 10 investment funds, will use its capital to bolster its new subsidiary.
David Lack, a partner in the Austin, Texas, company, said it would position MIQ Logistics “for growth” by adding service offerings and expanding its global network.
YRC Worldwide is MIQ’s first — and biggest — client. The $5.3 billion trucking operator has a “strategic relationship” with the new owners of its former subsidiary.
YRC Worldwide also plans to improve relations with third-party logistics providers, which bring a growing portion of freight to the less-than-truckload carrier.
“MIQ Logistics carries forward the people, client focus and services of YRC Logistics,” says John Carr, the new company’s president and chief operating officer.
MIQ is derived from the original name of the logistics company, Meridian IQ, which YRC predecessor Yellow created in 2002 as it embarked on a wave of acquisitions.
The company’s headquarters remain in Overland Park, Kan., home to YRC. It has 1,500 employees and offices in North and South America, Asia and Europe.
--Contact William B. Cassidy at wcassidy@joc.com.
