UPS Sells Freight Business to Montreal Firm
Atlanta-based United Parcel Service Inc. has sold its freight business to Montreal-based TFI International in a deal valued at $800 million.
UPS Freight posted $3.15 billion in revenues in 2020; it will join TFI under a new umbrella, TForce Freight, which gets 197 facilities in the deal, 50 of which are leased.
TForce will continue to serve UPS’s less-than-truckload needs across North America, the companies announced in January. UPS is said to be exiting the trucking business to focus on its package-delivery network as deliveries soar amid the pandemic.
The transaction is being conducted on a cash- and debt-free basis. TFI said it plans to spend upward of $50 million to improve efficiencies and boost margin with the newly added fleet. TFI has acquired 90 companies since 2008 and is one of the largest trucking companies in North America.