Greatwide will take on all customer contracts from the division, including customers in the grocery, steel and auto industries. The transition will involve about 600 employees from YRC Logistics.
"This acquisition allows us to expand our capabilities to include flatbed dedicated service and apply our transportation management services expertise to new industrial shippers," said Raymond Greer, CEO of Greatwide Logistics Services.
According to YRC, the $34 million from the deal will go toward paying down its revolving credit facility. The acquisition was part of its company-wide strategic plan to secure its financial strength.
"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," said John Carr, president of YRC Logistics.
The acquisition will be funded through Centerbridge Partners, which purchased Greatwide Logistics Services in February 2009.
"We will fund this acquisition with an additional equity investment and will continue to support the company with additional investments to opportunistically pursue acquisitions that are consistent with Greatwide's long-term strategic plan," said Will Manuel, senior managing director of Centerbridge Partners. "Post-acquisition, the company will continue to have no cash-pay debt on the balance sheet."