- Montreal-based TFI International (TFII) has reached a deal to buy American cargo giant, UPS Freight
- The deal is worth USD$800 million
- TFI will continue to use UPS’ domestic package network for five years
- The deal is expected to close in the second quarter of 2021
- TFI International is up 25.81 per cent on the day, with shares trading at C$81.89 at 11:52 a.m. EST
Montreal-based TFI International (TFII) has reached a deal to buy American cargo giant, UPS Freight.
The definitive agreement is for USD$800 million, and is still subject to working capital and other adjustments.
The purchase includes UPS less-than-truckload (LTL) and dedicated truckload businesses.
The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close during the second quarter of 2021.
UPS and TFI International will also enter into an agreement for UPS Freight to continue to utilize UPS’ domestic package network to fulfill shipments, for a period of five years.
The company says the decision to sell UPS Freight was reached following a thorough evaluation of the entire UPS portfolio, and aligns with the company’s “better not bigger” strategic positioning.
“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.”
Goldman Sachs & Co. LLC is serving as financial advisor, and King & Spalding LLP is serving as legal advisor to UPS.
TFI International is up 25.81 per cent on the day, with shares trading at C$81.89 at 11:52 a.m. EST.
