YRC Worldwide has said that to strengthen the operational focus at YRC Logistics, the sale supports the YRC Worldwide comprehensive strategic plan, which includes positioning the operating companies for future success.
YRC Worldwide has added that Greatwide is working with YRC Logistics to simplify employee transition from one company to the other. The purchase price of $34m will be used to pay down the company's revolving credit facility and, in accordance with the recent amendment, will be applied to the new revolver reserve.
John Carr, president of YRC Logistics, said: “This sale is a strategic move toward a more asset-light business model and aligns resources at YRC Logistics to focus on our core offerings, including transportation, distribution and global services.
“We have met with the clients involved and their response has been very supportive. They realize the dedicated fleet service is an integral part of the Greatwide portfolio and they understand this decision is the right thing for everyone involved.”
Is this a sensible move from YRC Logistics?