TFI International Acquisition of UPS Freight
TFI International buys UPS Freight for $800 million. TFI will rebrand UPS Freight as “TForce Freight”. The deal allows UPS to focus on its core small-package delivery business. UPS decided selling UPS Freight fits its “better, not bigger” business strategy.
UPS admitted assessing its portfolio before deciding to sell. In 2020, UPS Freight generated $3 billion revenue but was approximately breakeven. TFI said UPS Freight was barely covering costs.
Deal Details
- TForce Freight will operate independently within TFI’s less-than-truckload (LTL) business.
- Acquired truckload assets will join TFI’s truckload business.
- The deal is expected to close in the second quarter of 2021.
Additional Information
Founded in 1985, TForce Freight is a large U.S. LTL carrier. UPS aims to focus on final-mile delivery. TFI expands into LTL and truckload. UPS will recognize a $500 million non-cash pre-tax charge. The deal should finalize in the second quarter of 2021.