Big deal in North America
Canada-headquartered TFI International is buying UPS Freight, the less-than-truckload (LTL) and dedicated truckload (TL) divisions of United Parcel Service for USD 800 million on a cash-free, debt-free basis before working capital and other adjustments.
Amongst others, TFI International purchased World Courier and Ground Cavalier Transportation Services in 2017 and Normandin Transit in 2018.
Now, 90% of the acquired business unit will operate independently within TFI International’s LTL business segment under its new name “TForce Freight”, while acquired dedicated TL assets will join TFI’s TL business segment. The transaction is subject to regulatory approvals.
UPS Freight generated approximately USD 3 billion in revenue in 2020 and was approximately breakeven from an operating income perspective. The transaction is expected to be closed in the second quarter of 2021. (sh)