UPS enters into agreement to sell UPS Freight to TFI International

UPS (NYSE: UPS), has entered into a definitive agreement to sell UPS Freight (UPSF) to TFI International Inc. (NYSE and TSX: TFII) for $800 million, subject to working capital and other adjustments. “We’re excited about the future and the opportunities this creates for both UPS and UPS Freight as part of TFI International Inc.,” said Carol Tomé, Chief Executive Officer, UPS. “The agreement allows UPS to be even more laser-focused on the core parts of our business that drive the greatest value for our customers.” The decision to sell UPS Freight was reached following a thorough evaluation of the UPS portfolio, and aligns with the company’s ‘better not bigger’ strategic positioning. UPS and TFI International will also enter into an agreement for UPS Freight to continue to utilize UPS’ domestic package network to fulfill shipments, for a period of five years. The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close during the second quarter of 2021. UPS expects to recognize a non-cash, pre-tax impairment charge of approximately $500 million on its statement of consolidated income for the year ended December 31, 2020.
Goldman Sachs & Co. LLC is serving as financial advisor, and King & Spalding LLP is serving as legal advisor to UPS.