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Yellow | YRC Worldwide-Could Further Consolidation Lead To A Buyout By UPS?

So all yrc employees join under the UPSF contract? This is all conjecture, but just how would seniority be worked? We at UPSF have multiple seniority lists. There is road driver list and a local cartage list as well as casual. We have classification seniority and company seniority as well. As well ,we still after 10 years have not gotten rid of all our overnite equipment.
 
Teamsta II said:
So all yrc employees join under the UPSF contract? This is all conjecture, but just how would seniority be worked? We at UPSF have multiple seniority lists. There is road driver list and a local cartage list as well as casual. We have classification seniority and company seniority as well. As well ,we still after 10 years have not gotten rid of all our overnite equipment.
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Everybody else has a road board a city board and casuals also. Ups doesn't have anything about dovetailing in their contract though. That means they do not have to dovetail anybody else in. That would have to be something negotiated between the two companies which will never happen anyway. UPS is never buying a company in these broken pension funds. They just bought out of cspf why would they get sucked in again?
 
SAC75 said:
Everybody else has a road board a city board and casuals also. Ups doesn't have anything about dovetailing in their contract though. That means they do not have to dovetail anybody else in. That would have to be something negotiated between the two companies which will never happen anyway. UPS is never buying a company in these broken pension funds. They just bought out of cspf why would they get sucked in again?
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Deals are made everyday, they could have all the YRCW guys and gals moved to their fund for pennies on the dollar. They could also buy YRCW and run them as a separate company and then well who knows? I will believe it when I see it. Good Luck.
 
ESP said:
Deals are made everyday, they could have all the YRCW guys and gals moved to their fund for pennies on the dollar. They could also buy YRCW and run them as a separate company and then well who knows? I will believe it when I see it. Good Luck.
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I don't work here so I don't need the luck. Hope something finally works for YRC too. No one wants to be a billion in debt.
 
Teamsta II said:
So all yrc employees join under the UPSF contract? This is all conjecture, but just how would seniority be worked? We at UPSF have multiple seniority lists. There is road driver list and a local cartage list as well as casual. We have classification seniority and company seniority as well. As well ,we still after 10 years have not gotten rid of all our overnite equipment.
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Who is this we crap? In New England, UPSF has single line seniority. No classification, just company. The way it should be. No headaches, or bellyaches. And as far as equipment, who cares. As long as the check clears I don't care if the truck was painted pink with a roller brush over rust. I can see it now...the YRC fleet and all their mixed bag of junk equipment with the silver UPS Freight sticker slapped on the door...Beautiful!
 
mysticobra said:
Hahahaha... Banks love em! No principal.... All interest. Nyuk.. Nyuk.. :1sm364jumpbed:
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When the amount of interest collected equals the original loan amount, the bankers are ahead in the game. Why would they want YRC to fail? They gain the original loan back in the form of interest it is all gravy after that. And if they do go under they can write off the loan on corporate taxes. A win all the way around..
 
The only time I'd ever believe anything about this merger rumor,is when I see YRC stock spike.
When UPS purchased Overnite,they bought up all of the stock from anyone who held it.
There really wasn't any rumors as anyone with any forth sight would have been purchasing Overnite stock before the deal was done.
I did find out later that the Overnite big wigs working the deals of the buyout,made a nice piece of change with the stock they had.

I started with Overnite in 1986,retired from UPS Freight in 2008,with a comfortable pension.
I also had a bit over 20 years in the Teamsters.
I have just been informed by my local that my pension with them is going to be cut 31% starting July of 2017.

I really hated going non-union when my last union LTL went bankrupt,however it worked out for the best in the end.

I don't wish any of you YRC folks any bad luck,however I can't believe this merger rumor has any truth to it.
 
Freightmaster1 said:
Wow! This ought to :stirthepot: !

Here's a few excerpts from the story...


  1. Substantial expansion of a regional and line-haul network. This would include the addition of direct terminals in Alaska, Hawaii, Puerto Rico as well as Canada and Mexico. Additionally, YRC Worldwide already includes four separate operating entities, UPS could keep the holding company structure and include UPS LTL as the fifth company. Owning such a robust network would allow for consolidation and optimization of network terminals to be efficiently utilized by all operating companies.
  2. Another major benefit would be cost. UPS would most likely be able to purchase YRC Worldwide at or below $1.5 billion. At the most, the price would be very similar to the Coyote purchase price of $1.8 billion. Based on UPS's cash on-hand and leverage, a deal would have a very minimal impact on the balance sheet. However, UPS would gain a company with nearly $5 billion in revenue, combined with substantial revenue equipment and improved facilities including significant technology investments. XPO paid nearly double for Con-way at $3 billion, UPS would be getting a substantially discounted price based on any perceived risks; consolidating YRC Worldwide's debt would eliminate one of these risks.
  3. E-commerce and cross-selling growth. The LTL market continues to support many large e-commerce companies as well as industrial and retail shippers. YRC Worldwide would add a formidable customer list to UPS existing customers. Becoming the number one LTL carrier with five distinct service offerings throughout North America in combination with Coyote would generate a large increase in cross-selling opportunities, and potentially increase organic growth for Coyote.
  4. Competitive differentiation versus FedEx. UPS would have a unique and diversified leading LTL service which would give the company more consideration from existing and future customers requiring LTL and asset-light services, as well as those using air freight and package delivery services. UPS could pursue stronger marketing to more aggressively challenge FedEx's market share.
  5. Improved yield management. UPS would potentially control 30 to 35 percent of the LTL market which would improve the company's pricing capabilities. Combined with operating cost savings from network combinations, UPS could possibly witness margin expansion and greater profitability.
  6. Adequate capacity for near-term tightening issues. UPS would have the most extensive network as near-term federal regulations are approaching which would place the company in a strong position to fulfill customer needs, once supply has been diminished. Unionized labor contracts are in place through March 2019.
Investor Perspectives

For a price between $1.5 and $1.8 billion, UPS would be paying less than 4 times adjusted EBITDA, assuming that YRC Worldwide were to add another $100 million on to the existing roughly $340 million. The current outstanding nearly $1 billion in debt for YRC Worldwide would add 6 percent to UPS's existing $15.4 billion in debt. UPS would still have around $4.5 billion in cash and cash equivalents left over after the deal.

Over time, YRC Worldwide could potentially add around $5 billion in revenue, $100 million in net cash flow and somewhere around $0.10-0.15 per share. This does not sound like much compared to UPS's overall operations from an accretive perspective, but for the LTL and asset-light services, this could double operating income and substantially improve margins.

Based upon UPS's cash position, cash flow generation and leverage, YRC Worldwide's perceived leverage risk would not be as prevalent if combined with UPS. YRC Worldwide's unionized labor would add further risk associated with pension, wage and other benefit renegotiation, but UPS has strong experience in dealing with unionized labor.

Any proposed merger would be scrutinized by the Federal Trade Commission, FTC and Department of Justice (DOJ). The Hart-Scott-Rodino Act, HSR Act, established the Federal premerger notification program, which provides the FTC and DOJ with information about large mergers and acquisitions before they occur. A deal is not allowed to be closed until the waiting period outlined in the HSR Act has passed, or the government has granted early termination of the waiting period.

The LTL market would still have alternative competitors, most notably FedEx, which would still have a market share of around 25 percent. A merger between UPS and YRC Worldwide would not seem to result in a monopolizing effect for the LTL industry with only 30 to 35 percent market share.

Overall, possible benefits versus cost of a deal seem advantageous for UPS. While only speculative, it would make sense for UPS to let YRC Worldwide display further execution of the company's strategies over the next couple of quarters. But taking this chance could result in YRC Worldwide's stock price increasing higher from today's $9/share. The good thing is the company is so discounted with so few shares outstanding that even an increase to $25/share would only result in an EV of $1.7 billion.

Let me be clear with this final thought, this is not a recommendation to make a decision based upon speculative merger potential. As always investors should perform their due diligence and come to their own conclusions based upon their investment objectives and risk tolerances. But I do believe this deal would benefit UPS and I would not be surprised if a deal were to occur later this year.

Read the full story here...
http://seekingalpha.com/article/398...54i:6897347c4a4295ac818438a234f1ef55&uprof=51

:hyper::smilies 19296:
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Why does this comes up time to time, their is no way ups is going to buy YRC they don't make a billion a year by doing dumb things.
 
Apostolic said:
The only time I'd ever believe anything about this merger rumor,is when I see YRC stock spike.
When UPS purchased Overnite,they bought up all of the stock from anyone who held it.
There really wasn't any rumors as anyone with any forth sight would have been purchasing Overnite stock before the deal was done.
I did find out later that the Overnite big wigs working the deals of the buyout,made a nice piece of change with the stock they had.

I started with Overnite in 1986,retired from UPS Freight in 2008,with a comfortable pension.
I also had a bit over 20 years in the Teamsters.
I have just been informed by my local that my pension with them is going to be cut 31% starting July of 2017.

I really hated going non-union when my last union LTL went bankrupt,however it worked out for the best in the end.

I don't wish any of you YRC folks any bad luck,however I can't believe this merger rumor has any truth to it.
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I agree myself a YRC for 23 years I was with Be Mac before yea they are just wishful thinking.
 
I got to be defensive here. If they could find solution for pension it would be less than what they'd paid for small package exit and figure a way to turn a bigger profit out of Yrc freight. They have a gold mine with gaining the regionals there the backbone of this worldwide network.
 
Not to rain on your dreams of a merger..
Think of this buy-out realistically,what could be the gain,other than your customers.

YRC equipment is not the best in the industry.
UPS already has a lot of freight terminals & small pack depots in the same areas that YRC is located.
The many negative union issues would be a real sticking point with any company looking at a take over.
Also you do know UPS Freight has a paper contract,they have no involvement in the National Master Freight Agreement.

So in my opinion I see a lot more cons,then I do with the positives in a merger you all are wishing for.
 
Apostolic said:
Not to rain on your dreams of a merger..
Think of this buy-out realistically,what could be the gain,other than your customers.

YRC equipment is not the best in the industry.
UPS already has a lot of freight terminals & small pack depots in the same areas that YRC is located.
The many negative union issues would be a real sticking point with any company looking at a take over.
Also you do know UPS Freight has a paper contract,they have no involvement in the National Master Freight Agreement.

So in my opinion I see a lot more cons,then I do with the positives in a merger you all are wishing for.
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Hey Ap. I totally appreciate all your efforts here, especially in regards to the truck accident posts. But I would say my team partner Wong is right, as far as this story goes. This will happen when yellow pigs fly.
 
BIG R GUY I really try hard not to offend any one on this message board.
However whenever I see a topic on other forums that interests me.
Which I may have some knowledge of what in my opinion is right,or wrong.
Well then I like to add my 2 cents.

On this merger topic I have really only expressed my opinion,along with the rest of you.
After all the article that started this rumor in the first place,seems to have been speculation from its author.

I do usually only have time to take care of Mod,ing the truck crash forum.
But like I say when I see topics on other forums of interest.
I go ahead & post my opinion,if I've offended anyone,please forgive me.
I'll leave the rest of you with your dreams & expectations of the future of your company.
 
Apostolic said:
BIG R GUY I really try hard not to offend any one on this message board.
However whenever I see a topic on other forums that interests me.
Which I may have some knowledge of what in my opinion is right,or wrong.
Well then I like to add my 2 cents.

On this merger topic I have really only expressed my opinion,along with the rest of you.
After all the article that started this rumor in the first place,seems to have been speculation from its author.

I do usually only have time to take care of Mod,ing the truck crash forum.
But like I say when I see topics on other forums of interest.
I go ahead & post my opinion,if I've offended anyone,please forgive me.
I'll leave the rest of you with your dreams & expectations of the future of your company.
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No offense taken sir. I think you do a fabulous job. It just amazes me though what will start a sh!? Storm of speculation, just from some news article or break room, I heard type of things. Carry on, Sir...
 
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