By Dave Sebastian

 

United Parcel Service Inc. said it has agreed to sell UPS Freight to TFI International Inc. for $800 million, in an agreement that would allow the business to continue using UPS's domestic package network for five years to fulfill shipments.

UPS Freight offers less-than-truckload services, in which cargo from multiple shippers is combined in a single trailer, in all 50 states, Canada, Puerto Rico, Guam, the U.S. Virgin Islands and Mexico. The business has about 14,500 employees, 80% of whom are full-time, UPS said.

UPS on Monday said it expects to book a non-cash impairment charge of roughly $500 million before taxes for 2020. The deal is expected to close in the second quarter.

UPS said it decided to sell the business after assessing its portfolio, enabling it to pay down long-term debt.

The delivery giant said it will retain historical pension assets and liabilities, while pension benefits earned after closing will be TFI's responsibility.

 

Write to Dave Sebastian at dave.sebastian@wsj.com

 

(END) Dow Jones Newswires

January 25, 2021 09:09 ET (14:09 GMT)

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