- 25 January 2021
- Transport / Logistics Services
TFI International Inc is to buy UPS Freight for a reported $800 million. This is to be completed subjected 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 UPS Chief Executive Officer Carol Tomé. “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 divest UPS Freight comes after a thorough evaluation of the UPS portfolio of businesses, which includes the strategic positioning ‘better not bigger’.
As part of the deal UPS Freight will continue to use UPS domestic package network to fulfil last mile shipments for five years after the deal is closed. The deal is set to close, subject to closing conditions and regulatory approvals, in the second quarter of this year.
UPS has operated UPS Freight for more than 85 years and has developed it into one of the largest LTL carriers in the United States.