UPS (NYSE: UPS), has entered into a definitive agreement to sellUPS Freight (UPSF) to TFI International Inc. (NYSE and TSX: TFII)for $800 million, subject to working capital and otheradjustments.
“We’re excited about the future and the opportunities thiscreates for both UPS and UPS Freight as part of TFI InternationalInc ” said UPS Chief Executive Officer Carol Tomé. “The agreementallows UPS to be even more laser-focused on the core parts of ourbusiness that drive the greatest value for our customers.”
The decision to sell UPS Freight was reached following a thoroughevaluation 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 forUPS Freight to continue to utilize UPS’ domestic package network tofulfill shipments, for a period of five years.
The transaction, which is subject to customary closing conditionsand regulatory approvals, is expected to close during the secondquarter of 2021. UPS expects to recognize a non-cash, pre-taximpairment charge of approximately $500 million on its statement ofconsolidated income for the year ended December 31, 2020.
With an operating history of over 85 years, UPS Freight is one ofthe largest LTL carriers in the U.S offering a full range ofregional and long-haul solutions and an on-time delivery guaranteefor all LTL shipments and is headquartered in Richmond, VA.
Goldman Sachs & Co. LLC is serving as financial advisor, and King& Spalding LLP is serving as legal advisor to UPS.