TFI International Acquires UPS Freight for $800M
TFI International Inc. (TFI) is buying UPS Freight, the less-than-truckload (LTL), and the dedicated truckload (TL) division of United Parcel Service Inc., for $800 million, the two companies announced.
Approximately 90% of the acquired business will operate independently within TFI International’s LTL business segment under a new name, TForce Freight. Acquired dedicated TL assets will join TFI’s TL business segment. The deal is expected to close during the second quarter of the year.
In 2020, UPS Freight generated about $3 billion in revenue and was approximately breakeven from an operating income perspective, according to the companies. The transaction is expected to be accretive to diluted EPS in 2021. Going forward, TFI plans to look for near- and long-term opportunities to improve TForce Freight’s operating margin through separate management of LTL and dedicated TL businesses and operating efficiencies.