UPS announces agreement to sell UPS Freight to TFI International for $800M

UPS announces agreement to sell UPS Freight to TFI International for $800M

UPS recently announced their agreement to sell UPS Freight to TFI International in an $800M deal. The agreement includes UPS less-than-truckload (LTL) and dedicated truckload businesses. 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.

Summary

  • 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 Q2 of 2021.
  • UPS expects to recognize a non-cash, pre-tax impairment charge of approximately $500M on its statement of consolidated income for the year ended 31-Dec-20.
  • Goldman Sachs is serving as financial advisor to UPS.

Read the full UPS Freight Divestiture HERE.


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