UPS to Sell Freight Business to TFI International for $800 Million
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 email@example.com
(END) Dow Jones Newswires
January 25, 2021 09:09 ET (14:09 GMT)
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