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.
- 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.